Document:

EXHIBIT 10.26

                               HEADS OF AGREEMENT
                       for Manufacturing and Distribution
                                     between
                   WARNER-ELEKTRA-ATLANTIC CORPORATION ("WEA")
                                       and
                        NU TECH DIGITAL, INC. ("Company")

Capitalized terms not defined where they appear in the text are defined in
Paragraph 15.

      1. Appointment as Exclusive Distributor.

            (a) Exclusive Rights. Company, on behalf of the Company Entities,
hereby appoints WEA as Company's exclusive distributor of Products through
Normal Distribution Channels during the Term in the Territory in accordance with
the terms hereof. Company possesses (and hereby grants WEA) the right to sell
Products with the name (legal or assumed), photograph, likeness and biographical
material, as supplied by Company, of the artists whose performances are
contained therein. With respect to such names, photographs, likenesses and
biographical materials, WEA shall abide by any contractual requirements or
restrictions imposed upon Company of which WEA is given reasonably sufficient
prior written notice.

            (b) Download/Ringtone Sales. From time to time during the Term, and
subject to Company's rights in each case, Company shall determine those Products
Company wishes to make available for sale via download or as "ringtones" (or the
like) in the Territory and shall provide WEA with all rights, materials and
information necessary for WEA to copy, store, prepare, deliver and otherwise
make such Products available for sale via download, as "ringtones" (or the
like). Company shall cooperate with WEA to ensure that all such materials and
information are provided to WEA in the form, format(s) and manner WEA reasonably
requires from time to time in order to make Products so available. Company
understands that for the purposes of sales of Products via download, as
"ringtones" or the like, the term "Products" shall be deemed to include units
sold as full albums in addition to units sold as one or more individual
recordings otherwise embodied in Records furnished to WEA hereunder. Solely with
respect to units of Products sold by WEA in the form of downloads, ringtones and
the like, "WEA Net Sales" shall mean (i) the number of units of Products sold
via download, as "ringtones" (or the like) multiplied by (ii) the price (after
all rebates, adjustments, settlements, allowances, credits and discounts (other
than cash discounts) approved by Company) charged by WEA to WEA's customers for
all such sales of Products.

            (c) WEA's Undertakings.

                  (i) WEA shall render Distribution Services and shall
distribute and sell Products on Company's behalf through Normal Distribution
Channels during the Term in the Territory and shall solicit and fulfill orders
for Products in the same outlets as WEA generally does for the WMG Labels.

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                  (ii) WEA shall prepare for Company the same sales, returns,
credits and inventory reports as are prepared by WEA for the WMG Labels and
shall supply Company with such reports with the same frequency as such reports
are supplied by WEA to the WMG Labels. Monthly sales and return reports shall
include the following information: selection number, artist name, selection
title, product configuration, gross units shipped, units actually returned, net
units, discounted units, free goods, gross dollars charged, actual gross
returned dollar amounts and net returned dollar amounts.

            (d) Distribution Fee. WEA shall be entitled to retain a distribution
fee equal to 22% of WEA Net Sales of Products (the "Distribution Fee").

            (e) Advance. Promptly following the complete execution of this
Agreement, WEA shall pay to Company a non-refundable, fully-recoupable advance
in the amount of $200,000.00 (the "Advance"). The Advance shall be
fully-recoupable from all Net Receipts otherwise payable to Company hereunder.

      2. Title. Title to units of Products manufactured for distribution and
sale hereunder shall remain in Company. Units of Products shall be consigned by
Company to WEA, subject to the provisions of this Agreement. WEA, as consignee,
shall be empowered to pass title to units of Products directly to its customers.
WEA shall have the right, as Company's consignee, to accept any and all returns
of units of Products from its customers. Upon receipt of units of Products so
returned to WEA from its customers, title therein shall revert to Company.

      3. Manufacturing and Packaging Services.

            (a) Use of Services. Company shall have the option, exercisable by
written notice to WEA, to utilize Manufacturing and Packaging Services provided
by WEA through WEA's manufacturing and packaging designees (the "Manufacturing
and Packaging Entities") for the manufacture and packaging of units of Products
hereunder, including, without limitation, components therefor and all
separations and merchandising materials relating thereto. Manufacturing and
Packaging Services shall be furnished on the same terms and at the same prices
provided to the WMG Labels by the Manufacturing and Packaging Entities for the
WMG Labels' own comparable products.

            (b) Delivery of Source Materials. To the extent that Company elects
to utilize the Manufacturing and Packaging Services, Company shall, at Company's
sole expense, deliver to WEA (or to such suppliers as WEA may designate) all
Source Materials. Source Materials shall be of a quality suitable to comply with
WEA's technical standards. Company shall retain title to all Source Materials
supplied to WEA or its designees.

            (c) Trade Advertisements, Tip Sheets and Chart Listings. Company
shall cause all trade advertisements, tip sheets and chart listings for any
Product to identify WEA as the distributor of such Product in the Territory. In
the event of any failure to accord WEA such credit, such failure shall not be
deemed a breach of this Agreement if, following Company's receipt of written
notice thereof from WEA, Company shall cause such failure to be rectified
prospectively.

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            (d) Notices on Packaging; Security and Identification Strip.
Packaging for Products manufactured following the execution of this Agreement
shall have printed thereon "Distributed by Warner-Elektra-Atlantic Corporation"
(or such other identification of manufacturer or distributor as WEA may
reasonably designate from time to time) together with such logo as WEA may
designate. Packaging for Products manufactured following the execution of this
Agreement shall also include, among other things, a security and identification
strip (i.e., "title strip" or "dog bone" etc.), as well as internal electronic
article surveillance tags, all in a form similar to that affixed to the WMG
Labels' own product.

            (e) Parental Advisory Warnings. Company shall have the right to
affix a parental advisory warning sticker (or similar industry-standard warning
label) on Products manufactured for distribution and sale in the Territory in a
format used customarily by WEA or as may be required by applicable law. If
Company does not so designate, but WEA believes in WEA's reasonable business
judgment that such a warning is appropriate on a particular Product, WEA may
affix such a warning on such Product at Company's sole cost and expense.

            (f) Bar Code on Packaging: All packaging shall have printed thereon
a scannable "UPC Bar Code" conforming to recording industry standards which
specifically identifies the selection and configuration of the Product sold.

            (g) Ordering.

                  (i) The initial orders for finished units of Products shall be
specified by Company after consultation with WEA.

                  (ii) Reorders of finished units of Products shall be specified
by Company after consultation with WEA. For this purpose, verbal approval given
by Company's most senior executive directly in charge of production shall be
sufficient. It is contemplated that the parties will agree upon guidelines for
reordering so that WEA will not require a specific approval by Company in each
instance.

                  (iii) The minimum order quantities for units of Products and
for all other items ordered hereunder shall be the same as the minimums
applicable from time to time for the WMG Labels' comparable products (currently,
300 units for CDs and cassettes).

                  (iv) Orders hereunder shall be deemed fulfilled by the
manufacture of any quantity between 90% and 110% of the quantity ordered.

      4. Release Schedules. Company, in consultation with WEA, shall select a
reasonable release date for each specific Product from the release dates offered
by WEA (which shall be the same release dates as are generally offered by WEA to
the WMG Labels). WEA shall meet each established release schedule provided that
Company has had the initial order of finished units of the applicable Product
manufactured and delivered to WEA's warehouses in reasonably sufficient time for
WEA to do so. In connection therewith, WEA

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shall furnish Company with new release book due dates, merchandise in depots due
dates and WEA's requirements for product release schedules.

      5. Company's Financial Obligations. Company shall be solely responsible
for and shall account for and pay: (a) any and all sales and use taxes levied on
any of the amounts payable to Company hereunder or on the sale of units of
Products or any other taxes relating to units of Products which are in the
possession or control of WEA, (b) all costs incurred in the creation of
Products, (c) all costs incurred in the manufacturing and packaging of units of
Products, and (d) all monies becoming payable to all parties rendering services
or otherwise in respect of sales of units of Products (e.g., artist royalties,
mechanical royalties, union costs (if applicable), producer royalties, etc.). In
addition, Company shall obtain all consents and permissions required for the
release of Products hereunder and WEA shall have no obligations with regard
thereto. For the avoidance of doubt, Company shall not be responsible for
payment of: (i) any taxes applicable to the sale of units of Products by WEA's
customers to consumers or (ii) any of WEA's indirect or general overhead charges
or the salaries of WEA's regular employees.

      6. Other Company Obligations.

            (a) Advertising, Marketing and Promotion. The advertising, marketing
and promotion of Products hereunder shall be Company's sole responsibility and
at Company's sole cost and expense.

            (b) Company Reporting. On or before September 1 of each calendar
year of the Term, Company will provide WEA with sales projections for Products
for the next fiscal year of the Term. Company will provide WEA with an update
for each such sales projection on a quarterly basis.

      7. Sale of Products.

            (a) Determination of Price Categories. Company shall determine the
price category designation (e.g., top-line, mid-line, budget, etc.) of Products
and/or, if Company so chooses, the suggested retail list prices for Products, it
being understood that Company shall use the same price category designation or
list prices which WEA uses. Company may change such price category designation
and/or suggested retail list price of a Product upon 60 days' written notice to
WEA.

            (b) Determination of Customer Prices. WEA shall determine the
wholesale selling price of Products to customers and the terms of sale for
Products, including, without limitation, cash discounts (i.e., discounts for
timely or expedited payments from customers) and credit, dating and returns
policies, in a manner consistent with policies customarily applied to products
of the WMG Labels; provided, however, that WEA shall obtain Company's written
consent as to any "special dating" which will result in a delayed payment to
Company pursuant to subparagraph 9(a), special program free goods and special
sales discounts.

      8. Inventory.

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            (a) Storage and Shrinkage. WEA shall accept and store all Products
delivered to WEA hereunder. WEA shall not be responsible for inventory shrinkage
of up to 1% of the total volume of all Products in finished good form delivered
to WEA during any calendar year of the Term. With respect to inventory shrinkage
in excess of 1%, the sole liability shall be payment to Company of the
Replacement Cost therefor.

            (b) Surplus Units Determination and Removal. Promptly after WEA's
written request, Company shall remove from WEA's warehouses, or order the
destruction of, at Company's sole expense, the stock of any Surplus Units of
Products. Company shall be deemed to have ordered the destruction of Surplus
Units if, 60 days after the date of the written request from WEA, Company has
not given instructions to WEA for the immediate delivery of such Surplus Units
to a public warehouse or other non-WEA location at Company's sole expense and
for Company's account.

            (c) Marking Inventory. WEA may deface the bar code on or re-bar code
all units of Products prior to any removal by Company or delivery to Company of
such units of Products, and Company shall reimburse WEA, promptly following
WEA's request therefor, with the amount of any direct, out-of-pocket costs
incurred by WEA in connection with such defacing or re-bar-coding.

            (d) Deletions. On not less than 60 days' written notice to WEA,
Company may elect to delete any particular Product from WEA's distribution and
sale obligations hereunder when Company determines, in Company's good faith
business judgment, such deletion is commercially reasonable. Any Product so
deleted shall not be distributed by Company or any third party during the Term
in the Territory. Returns of deleted Products will be accepted in accordance
with WEA's standard policies and procedures for such returns.

      9. Statements and Payments.

            (a) Rendition of Statements. WEA shall account for and pay to
Company all Net Receipts derived from sales of Products. WEA shall render a
statement for sales of Products occurring during each fiscal month of the Term
within 60 days following the last Friday of each calendar month, said 60-day
period to be extended accordingly on a Product-by-Product basis where a customer
is granted "special dating" by WEA with Company's consent. Concurrently with the
rendition of each such statement, WEA shall pay any Net Receipts shown to be due
thereby less any amounts which may be applied in recoupment of the Advance. Any
such payments shall be less any reserves established by WEA against returns,
credits and advertising authorizations, as provided below. In each month of the
Term, a base reserve established by WEA against returns and credits plus the
amount of any open but not yet credited advertising authorizations issued on
behalf of Company shall be deducted from any such payments. Such reserve shall
not exceed 25% of WEA Gross Sales for any month of the Term plus the amount of
any such open but not yet credited advertising authorizations; provided,
however, that in the last six months of the Term, such reserve shall not exceed
the sum of: (i) the greater of: (A) 35% of WEA Gross Sales for any such month or
(B) the positive difference, if any, between: (I) the then-current aggregate
amount of the open return authorizations issued by WEA and (II)

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the then-current aggregate amount of the returns reserves being held by WEA;
plus (ii) the amount of open but not yet credited advertising authorizations
issued by WEA on behalf of Company. WEA shall fully liquidate the
returns-related portion of each base reserve as initially established, less any
credits issued therefrom, within six months from the date that such base reserve
was established. If any statement shall show a balance in WEA's favor (the
"Negative Balance"), Company shall make payment of the Negative Balance to WEA
within five business days after the date of rendition of the statement.
Notwithstanding the foregoing, WEA shall also have the right to deduct the
Negative Balance from any monies becoming payable to Company pursuant to this
Agreement.

            (b) Audits. Company shall have the right at Company's sole expense
to appoint a certified public accountant or chartered accountant who is not then
currently engaged in an outstanding audit of WEA to examine WEA's books and
records as same pertain to the distribution of Products; provided, however, that
any such examination shall be for a reasonable duration and shall take place at
WEA's offices during normal business hours on reasonable prior written notice
and shall not occur more than once in any calendar year or more than once for
any statement.

            (c) Objections to Statements. Company shall be deemed to have
consented to all accountings rendered by WEA hereunder and said accountings
shall be binding upon Company and shall not be subject to any objection by
Company for any reason unless specific objection, in writing, stating the basis
thereof, is given to WEA within two years after the date rendered, and after
such written objection, unless suit is instituted within three years after the
date rendered.

      10. Post-Term Procedures.

            (a) Manufacturing and Packaging Services and Distribution Services.

                  (i) Upon the expiration of the Term, WEA shall cause the
cessation of all Distribution Services and all Manufacturing and Packaging
Services and shall have no further rights or obligations with respect to
Products except as provided herein and all unshipped orders for Products shall
be canceled. Within 30 days following the expiration of the Term, WEA shall
provide Company with a list of all units of Products in WEA's possession on such
date and the prices paid by customers during the Term with respect to such
Products.

                  (ii) Within 60 days following the expiration of the Term,
Company shall remove from WEA's and the Manufacturing and Packaging Entities'
warehouses and other facilities, at Company's sole expense: (A) all units of
Products in WEA's or the Manufacturing and Packaging Entities' possession on the
date of expiration, (B) all Source Materials in WEA's or the Manufacturing and
Packaging Entities' possession on the date of expiration, and (C) all
manufacturing and packaging materials in WEA's or the Manufacturing and
Packaging Entities' possession on the date of expiration.

                  (iii) Prior to the expiration of the Term, WEA and Company
shall notify WEA's customers that following the expiration of the Term, WEA
shall not accept any further returns of units of Products and that Company or
Company's new distributor shall accept such returns. Company agrees that all
such returns shall be so accepted and credit given

<PAGE>

or cash paid to WEA's customer, as appropriate. Company agrees to indemnify WEA
from any liability in connection with such returns. Notwithstanding the
foregoing, WEA shall honor any open return authorizations. Company shall accept
the return from WEA of all units of Products distributed during the Term which
are returned by WEA's customers from time to time thereafter and Company shall
re-purchase such units of Products from WEA for an amount equal to the credit
given to WEA's customer for such return. Units of Products returned to WEA after
the initial removal of Products by Company shall be removed by Company, at
Company's sole expense, within 30 days after written request by WEA.

                  (iv) Any inventory delivered to or removed by Company as
aforesaid shall have the bar-coding defaced or shall be re-bar-coded by WEA at
Company's sole expense.

                  (v) Failure to remove inventory (or to give instructions for
its removal within the time periods mentioned in subparagraphs 10(a)(ii) and
(iii)) shall be deemed to be an authorization to WEA to destroy such inventory
at Company's sole expense.

            (b) Continuing Payment Obligations. The termination of the Term
shall not discharge Company or WEA from their obligations to pay any amounts
owing hereunder. As long as any amount so owing to WEA by Company has not been
paid in full, in addition to WEA's other rights and remedies, WEA shall have the
right to reimburse itself from amounts owed to Company hereunder.

      11. Warranties, Representations and Indemnities.

            (a) Company's Warranties and Representations. Company warrants and
represents:

                  (i) Company has the right and power to enter into and fully
perform this Agreement,

                  (ii) No agreement of any kind heretofore entered into by
Company shall interfere in any manner with the complete performance of this
Agreement, and

                  (iii) Material embodied in Products and the packaging therefor
as supplied by Company and any other items furnished to WEA by Company shall not
violate any law or infringe upon the rights of any third party. As used herein,
"Material" shall include, without limitation, all musical compositions, names,
biographical materials and likenesses, photographic, video or motion picture
images, sound recordings, intellectual properties, all packaging and artwork and
Company's trademarks, tradenames and logos.

            (b) Company's Indemnities. Company agrees to and does hereby
indemnify, save and hold WEA and its affiliates, and each of their respective
officers, directors and employees (collectively, for the purposes of this
subparagraph 11(b) only, ("WEA") harmless from any and all loss and damage
(including, without limitation, court costs and reasonable attorneys' fees)
arising out of, connected with or as a result of any inconsistency with, failure
of, or breach or threatened breach by Company of any warranty, representation,
agreement, undertaking or covenant contained in this Agreement. WEA shall give
Company

<PAGE>

prompt notice of any third-party claim to which the foregoing indemnity applies
and Company shall assume the defense of any such claim through counsel of
Company's choice and at Company's sole expense. WEA shall have the right to
participate in such defense through counsel of WEA's choice and at WEA's
expense.

            (c) WEA's Warranties and Representations. WEA warrants and
represents:

                  (i) WEA has the right and power to enter into and fully
perform this Agreement, and

                  (ii) No agreement of any kind heretofore entered into by WEA
shall interfere in any manner with the complete performance of this Agreement.

            (d) WEA's Indemnities. WEA agrees to and does hereby indemnify, save
and hold Company and its affiliates, and each of their respective officers,
directors and employees (collectively, for the purposes of this subparagraph
11(d) only, ("Company") harmless from any and all loss and damage (including,
without limitation, court costs and reasonable attorneys' fees) arising out of,
connected with or as a result of any inconsistency with, failure of, or breach
or threatened breach by WEA of any warranty, representation, agreement,
undertaking or covenant contained in this Agreement. Company shall give WEA
prompt notice of any third party claim to which the foregoing indemnity applies
and WEA shall assume the defense of any such claim through counsel of WEA's
choice and at WEA's sole expense. Company shall have the right to participate in
such defense through counsel of Company's choice and at Company's expense.

      12. Security Interest. To induce WEA to enter into this Agreement, subject
only to Company's currently existing security agreements with SBA and US Bank,
Company hereby irrevocably grants to WEA a security interest in and to Source
Materials, Products, all intellectual property rights in and to Products, all
present and after-acquired inventory of Products and any proceeds derived from
the sale of such inventory (the "Collateral") to secure the payment of any
amounts which Company is required to pay pursuant to this Agreement. Company
shall take all action reasonably necessary or as WEA shall reasonably request to
create, confirm or preserve the security interest granted herein, perfect a lien
in the Collateral and enable WEA to exercise and enforce the rights, remedies
and powers provided to it hereunder, including, without limitation, the
execution and delivery to WEA of financing statements and agreements and
documents evidencing the security interest in Company's intellectual property,
in each case, in appropriate form for filing in all appropriate filing
jurisdictions. Company warrants and represents that Company has not granted and
shall not grant or allow to exist any security interest or lien of any kind in
the Collateral other than the security interest granted herein or the
currently-existing security interests granted to SBA and US Bank referred to
above.

      13. Force Majeure. If because of: act of God, inevitable accident, fire,
lockout, strike or other labor dispute, riot or civil commotion, act of public
enemy, enactment, rule, order or act of any government or governmental
instrumentality (whether federal, state, local or foreign), failure of technical
facilities, failure or delay of transportation facilities, shortage of raw
materials, or other cause of a similar or different nature not reasonably within
WEA's or

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Company's control, as applicable (a "Force Majeure Event"), either party hereto
is materially hampered in the performance of its obligations under this
Agreement or its normal business operations are delayed or become impossible or
commercially impracticable; then, without limiting such party's rights, the
party affected by such Force Majeure Event shall have the option, by giving the
other party notice, to suspend its obligations hereunder for the duration of any
such contingency.

      14. Limitation on WEA's Obligations.

            (a) WEA shall have the right, without any liability to Company, to
decline to manufacture and/or distribute and sell (or, as applicable, to cease
to manufacture and/or distribute and sell):

                  (i) any Product on the grounds of advocacy of illegal
activity, patent offensiveness, invasion of rights of privacy and publicity
and/or defamation or other violation of law or infringement of any rights of
other persons, including, without limitation, rights of copyright and trademark,

                  (ii) any Product if WEA reasonably believes that the
manufacture and/or distribution and sale of such Product would constitute a
material breach by Company of any of the warranties and representations
contained herein, and

                  (iii) any Product in respect of which the Company Entities do
not have (A) a majority ownership interest or (B) other non-ownership interest
that is tantamount to majority ownership (i.e., an exclusive long-term license
granting the Company Entities significantly broader exploitation rights than the
right to manufacture and/or distribute such Product on a "P&D" basis).

            (b) Promptly after any new Product becomes available, Company shall
send WEA a copy of such Product and the artwork therefor. If, for any of the
reasons set forth in subparagraph 14(a), WEA elects not to manufacture and/or
distribute and sell (or to cease to manufacture and/or distribute and sell) any
particular Product pursuant to this Agreement, then WEA shall promptly notify
Company of such election, and with respect to such particular Product, Company
shall have the right to exploit and/or to cause any third parties to exploit any
or all of the rights otherwise herein granted to WEA in connection therewith
without any further obligation to WEA with respect thereto.

      15. Definitions.

            (a) "Armed Forces Post Exchanges" - US military posts, ships' stores
or other US armed forces facilities.

            (b) "Company Entities" - Company and any other entities owned or
controlled, directly or indirectly by Company or by Lee Kasper or in which
Company or Lee Kasper have a direct or indirect income interest (other than
publicly traded stock or other securities).

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            (c) "Confidential Information" - any information or documents
regarding or contained in this Agreement. Confidential Information shall not
include information or documents known generally to the public or the recorded
music industry other than as a result of an unauthorized disclosure by WEA or
Company.

            (d) "Distribution Services" - the following distribution services
which are provided by WEA to the WMG Labels: (i) all field sales/merchandising
and branch marketing activities, (ii) solicitation, acceptance and processing of
orders from customers, (iii) physical distribution, (iv) processing of returns
for scrap or return to inventory, (v) inventory control and warehousing, (vi)
invoicing and collection of customer accounts, (vii) processing and issuance of
credits to customers, (viii) shipping services for promotional units of Products
and point-of-purchase materials and (ix) handling, processing, administering and
auditing co-operative advertising allowances and issuing credits therefor.

            (e) "Manufacturing and Packaging Services" - the following
manufacturing and packaging services provided through WEA to the WMG Labels by
the Manufacturing and Packaging Entities: (i) selection of suppliers, (ii)
ordering units of Products, components therefor and all separations and
merchandising materials relating thereto from various suppliers such as pressing
plants, tape duplicators and printers including, without limitation, suppliers
affiliated with WEA, (iii) arranging shipment of components to various points,
(iv) arranging shipment of finished units of Products from point of manufacture
to WEA or its customers, as the case may be and (v) inventory control with
respect to the foregoing.

            (f) "Net Receipts" - WEA Net Sales less:

                  (i) All manufacturing and packaging costs paid or incurred by
WEA on Company's behalf (if any) as an accommodation to Company,

                  (ii) the Distribution Fee to be retained by WEA for its own
account,

                  (iii) for each unit of Product returned to WEA for credit and
refurbished and recycled into inventory the greater of: (A) $0.25 per unit; or
(B) WEA's actual out-of-pocket cost,

                  (iv) for each unit of Product returned to WEA for credit and
scrapped the greater of: (A) $0.10 per unit; or (B) WEA's actual out-of-pocket
cost,

                  (v) all actual out-of-pocket storage charges charged to WEA
for each unit of Product held in inventory in excess of a six-months' supply,

                  (vi) All freight charges incurred by or on behalf of WEA for
shipping of units of Products at Company's written request other than as regular
bulk freight,

                  (vii) All freight charges incurred by or on behalf of WEA for
shipping of items from various suppliers to WEA,

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                  (viii) All freight charges incurred by or on behalf of WEA for
the shipping of units of Products referred to in subparagraph 15(d)(viii);

                  (ix) For (A) units of Products sold directly to third parties
by a Company Entity and shipped from WEA locations, or shipped from WEA
locations to a Company Entity's warehouse or elsewhere at Company's direction
and for all non-billable units of Products (other than so-called "regular
program free goods," "special program free goods" and (B) units of Products
described in subparagraph 15(f)(ix)(A)) shipped from WEA locations, including
units of Products shipped pursuant to subparagraph 15(d)(viii), the greater of:
(X) $0.30 per unit (plus all applicable freight charges); or (Y) WEA's actual
cost (plus all applicable freight charges). The units of Products referred to in
this paragraph 15(f)(ix) shall only be sent in box lot quantities,

                  (x) All content preparation charges and all other
out-of-pocket amounts actually paid or incurred by WEA in connection with the
preparation or sale of units of Products via download, as "ringtones" or the
like hereunder, and

                  (xi) All other direct, out-of-pocket expenses paid or incurred
by WEA, if any, directly attributable to the manufacture, sale, marketing,
advertising, promotion, distribution and exploitation of Products and expressly
permitted to be charged to Company pursuant to this Agreement or otherwise.

            (g) "Normal Distribution Channels" - the distribution channels in
the Territory through which WEA normally distributes audio-only and audio-visual
products including Internet and on-line distribution of products in physical
form and products other than in physical form (e.g., "downloads," "ringtones"
and etc.), but specifically excluding record clubs, television sales, mail order
sales, special products sales and premium sales. Notwithstanding the foregoing,
it is hereby acknowledged that prior to the commencement of the Term, Company
has granted rights to certain third parties to sell Products in non-physical
form via the Internet and all such arrangements are set forth on Exhibit A
hereto including the dates on which the term of each such agreement expires (the
"Third Party Download Deals"). Company may continue to sell non-physical units
of Products via the Third Party Download Deals during the current term of each
such agreement, provided, that the term of the Third Party Download Deals shall
not be amended or extended during the Term hereof.

            (h) "Products" - all audio-only and audio-visual recordings owned or
controlled, directly or indirectly, in the Territory by the Company Entities
which the Company Entities wish to release in the Territory.

            (i) "Replacement Cost" - the price paid by or charged to Company for
pressing or duplicating units of Products including, without limitation,
manufacturing, shrinkwrapping, covers, sleeves, labels and similar accessories
or inserts and applicable freight costs, without any margin of profit to
Company.

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            (j) "Source Materials" - collectively, the material necessary to
manufacture units of Products and all materials necessary to manufacture
packaging, inserts and stickers including, without limitation, various
components thereof.

            (k) "Surplus Units" - more than a six-month supply (as determined in
WEA's good faith business judgment) of units of a particular Product.

            (l) "Term" - the two-year period commencing on ___________, 2005 and
ending on ________________, 2007. Upon written notice given to Company at any
time prior to the expiration of the Term, WEA shall have the option to extend
the Term for one additional year commencing on ______________, 2007 and ending
on _____________, 2008.

            (m) "Territory" - (i) the US, its territories and possessions,
including, without limitation, Puerto Rico, and Armed Forces Post Exchanges
serviced from distribution points in the US; and (ii) Canada.

            (n) "WEA Gross Sales" - (i) the number of units of Products shipped
and invoiced for payment multiplied by (ii) the price (after all rebates,
adjustments, settlements, allowances, credits and discounts (other than cash
discounts) approved by Company) charged by WEA to WEA's customers for all sales
of Products.

            (o) "WEA Net Sales" - WEA Gross Sales net of actual returns.

            (p) "WMG" - Warner Music Group Inc.

            (q) "WMG Labels" - the wholly-owned US-based record labels of WMG.

      16. Confidentiality. Neither WEA nor Company shall disclose or reveal to
any person or entity any Confidential Information, except as required by law or
court order. Either party hereto may disclose Confidential Information to its
attorneys under privilege, to its accountants and to any other third parties on
a "need to know" basis, provided that the recipients of such Confidential
Information (other than attorneys or accountants) are bound in writing by a
confidentiality agreement in a form acceptable to the other party hereto and to
which the other party hereto is a party. No party hereto shall make a press
release or public announcement concerning this Agreement without the written
consent of all other parties hereto.

      17. Miscellaneous.

            (a) Entire Agreement, Modification, Waiver. This Agreement contains
the entire understanding of the parties hereto relating to the subject matter
hereof and supersedes all previous agreements or arrangements between the
parties hereto relating to the subject matter hereof. This Agreement cannot be
changed or terminated except by an instrument signed by the authorized
signatories of the parties. A waiver by either party of any term or condition of
this Agreement in any instance shall not be deemed or construed as a waiver of
such term or condition for the future, or of any subsequent breach thereof. All
remedies, rights, undertakings, obligations, and agreements contained in this
Agreement shall be

<PAGE>

cumulative and none of them shall be in limitation of any other remedy, right,
undertaking, obligation or agreement of either party. Should any provision of
this Agreement be adjudicated by a court of competent jurisdiction as void,
invalid or inoperative, such decision shall not affect any other provision
hereof, and the remainder of this Agreement shall be effective as though such
void, invalid or inoperative provision had not been contained herein.

            (b) Assignment. Either party hereto (the "Assignor") shall have the
right without the consent of the other party (the "Other Party") to assign this
Agreement in whole or in part, but only if: (i) the Other Party's rights and
interests under this Agreement are not diminished or otherwise altered as a
result of the assignment, (ii) the Assignor, in addition to the assignee, shall
in all respects remain liable to the Other Party under this Agreement
notwithstanding the assignment and (iii) prior to the assignment and at any
times thereafter as the Other Party may reasonably require, the Assignor shall
cause the assignee to execute and deliver to the Other Party all documents which
the Other Party may reasonably require in connection with the assignment and/or
this Agreement.

            (c) Transfers, Sales, Assignment or Encumbrances. Notwithstanding
subparagraph 17(b) above, Company represents, warrants and covenants that as an
express and written condition to (i) any transfer, sale, assignment, or
encumbrance of all or substantially all of Company's assets (including but not
limited to the Products), (ii) any transfer, sale, assignment or encumbrance of
a majority or controlling interest in Company or its parent corporation, if any,
or (iii) any other transaction or arrangement transferring the ownership or the
license of any of the Products, this Agreement shall remain in full force and
effect, and shall be binding upon all the parties to any such transfer, sale,
assignment, encumbrance or transaction including but not limited to Company and
any such purchaser, transferee or assignee. Notwithstanding any such sale,
assignment, transfer or transaction, Company represents, warrants and covenants
that it shall remain fully liable for the obligations of such purchaser,
transferee or assignee or any other party to such transaction, unless WEA shall
have previously, in writing, agreed to look only to such purchaser, assignee,
transferee or other party to the transaction and has agreed to release Company
from its obligations under this Agreement. Company further represents, warrants
and covenants that, in the event WEA is required to commence a lawsuit to
enforce the terms of this provision, WEA will have no adequate remedy at law and
will be entitled to injunctive relief as well as the expenses, including
reasonable attorneys' fees, incurred by WEA in enforcing the terms of this
provision; provided, however, that nothing contained herein shall be deemed to
constitute a waiver by Company of any rights which Company may have to offer
fact-based defenses to any request made by WEA for injunctive relief.

            (d) Breach, Notice and Cure. Other than a breach of the exclusivity
provisions hereof, no breach of this Agreement by Company shall be deemed
material unless within 60 days after WEA learns of such breach, WEA serves
written notice on Company specifying the nature thereof and Company fails to
cure such breach, if any, within 30 days after receipt of such notice (or 10
days in the case of a failure by Company to pay a sum certain). No breach of
this Agreement by WEA shall be deemed material unless within 60 days after
Company learns of such breach, Company serves written notice on WEA specifying
the nature thereof and WEA fails to cure such breach, if any, within 30 days
after receipt of such notice (or 10 days in the case of a failure by WEA to pay
a sum certain).

<PAGE>

            (e) Further Assurances. WEA and Company each agree to execute and
deliver all such other and additional instruments and documents and to do such
other acts and things as may be necessary to more fully effectuate this
Agreement.

            (f) Equitable Relief. Each of WEA and Company recognizes that its
rights and obligations hereunder with respect to the performance of non-monetary
obligations are unique and that damages at law will be an inadequate remedy for
breach or threatened breach of such provisions of this Agreement, and agrees
that the parties' respective rights and obligations hereunder with respect to
such non-monetary obligations shall be enforceable by specific performance,
injunction or other equitable remedy.

            (g) Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of, and shall be enforceable by, each of the parties hereto
and their respective successors, heirs, assigns and designees.

            (h) Notices. All notices which any party hereto is required or may
wish to give the other shall be given by delivering, mailing or faxing the same
to the other at the addresses specified below:

                           Company:         NuTech Digital, Inc.
                                            7900 Gloria Avenue
                                            Van Nuys, California 91406
                                            Attn:  _____________
                                            Fax:  (818) 994-1575

                                            with a copy to:

                                            ------------------
                                            ------------------
                                            ------------------
                                            Attn:  _______________
                                            Fax:  (___) ___________

                           WEA:             Warner-Elektra-Atlantic Corporation
                                            75 Rockefeller Plaza
                                            New York, New York 10019
                                            Attn:  President
                                            Fax:  (212) _________

                                            with a copy to:

                                            Warner Music Group Inc.
                                            75 Rockefeller Plaza
                                            New York, New York 10019
                                            Attention: EVP, General Counsel
                                            Fax: (212) 258-3092

<PAGE>

All notices shall be deemed effective upon their receipt.

            (i) No Agency. Company and WEA each shall have the status of an
independent contractor and nothing herein contained shall contemplate or
constitute Company as WEA's agent or employee or WEA as Company's agent or
employee. This Agreement does not constitute or acknowledge any partnership or
joint venture between Company and WEA.

            (j) Construction, Jurisdiction, Venue. This Agreement has been
entered into in the State of New York, and the validity, interpretation and
legal effect of this Agreement shall be governed by the laws of the State of New
York applicable to contracts entered into and performed entirely within the
State of New York, with respect to the determination of any claim, dispute or
disagreement which may arise out of the interpretation, performance or breach of
this Agreement. Company and WEA each agree to submit to the jurisdiction of the
Federal or State courts located in New York City in any action which may arise
out of this Agreement and said courts shall have exclusive jurisdiction over all
disputes between WEA and Company pertaining to this Agreement and all matters
related thereto.

            (k) Captions. The captions herein contained are inserted solely for
reference and shall not constitute a part of this Agreement nor affect its
construction, meaning or effect.

      If the foregoing is acceptable, please acknowledge the same by signing in
the appropriate places below.

                                            WARNER-ELEKTRA-ATLANTIC CORPORATION,
                                            a New York corporation

                                            By:_________________________________

                                            NUTECH DIGITAL, INC., a
                                            ______________ corporation

                                            By:_________________________

ACCEPTED AND AGREED TO ONLY INSOFAR AS SUBPARAGRAPHS 15(b) and (h) PERTAIN TO
ME:

-------------------------------
Lee Kasper

<PAGE>

                                    EXHIBIT A

                           Third Party Download DealsExhibit
      10.52

     

    

     

    
       

    

    October
      10, 2005

    

    Mr.
      Christopher R. Ward

    Shells
      Seafood Restaurant, Inc.

    Vice
      President of Purchasing

    16313
      N.
      Dale Mabry Hwy # 100

    Tampa,
      FL
      33618

    

    

    FOODSERVICE
      PRODUCTS DISTRIBUTION AGREEMENT

    

    Dear
      Mr.
      Ward:

    

    BACKGROUND

    

    
      	
              A.

            	
              Performance
                Food Group, Inc. (“PFG”)
                has developed a national network of foodservice product distribution
                companies (“PFG Distributors”) that perform purchasing, marketing,
                warehousing, quality control, product research and development,
                transportation and distribution services for national and regional
                foodservice Customers.

            

    

    

    
      	
              B.

            	
              Shells
                Seafood Restaurant, Inc. (“Customer”)
                desires to contract with PFG as its Primary Distributor (as hereinafter
                defined) for foodservice products to all of the Shells Seafood Restaurant,
                Inc. locations where PFG has distribution and is willing to
                service.

            

    

    

    
      	
              C.

            	
              Customer
                hereby contracts with PFG Florida to provide distribution services
                for the
                Customer Locations pursuant to the terms and conditions set forth
                in this
                Foodservice Products Distribution Agreement (this
                “Agreement”).

            

    

    

    AGREEMENT
      TERMS

    In
      consideration of the mutual promises set forth herein and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereby agree as follows.

    

    1. PFG
      FLORIDA TO SERVE AS PRIMARY DISTRIBUTOR.
      PFG
      Florida shall serve as Customer’s Primary Distributor to Customer Locations for
      foodservice products within the designated categories (“Designated Categories”)
      set forth in Section 6 hereto (“Products”). For all purposes of this Agreement,
      Primary Distributor shall mean that Customer and/or the Customer Locations
      shall
      purchase ninety percent (90%) or more of the Products’ requirements in each
      Designated Category for the Customer Locations (the “Requirements Threshold”)
      from PFG Florida (as hereinafter defined). In the event that the Requirements
      Threshold is not satisfied in a given Designated Category during any two
      consecutive calendar months, PFG reserves the right to convert such Designated
      Category to a distribution fee consistent with the actual volume of Products
      and
      the actual percentage of Products’ requirements purchased for Customer Locations
      in such Designated Category.

    

    2. APPOINTED
      DISTRIBUTORS.
      PFG
      Florida shall for all purposes of this Agreement hereby be defined as “Appointed
      Distributors”, to provide distribution services to Customer in accordance with
      the provisions of this Agreement. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. TERM
      OF AGREEMENT.
      The
      term (“Term”) of this Agreement will commence effective as of (10/01/05) and
      shall continue for three (3) years, expiring (09/30/08). Either party may
      terminate the agreement, without cause, hereto-effective following one hundred
      twenty (120) days prior notice of termination to the other party. Either party
      hereto may propose any such amendments (“Amendment(s)”) to this Agreement by
      providing notice of such proposed Amendment (“Amendment Notice”) to the other
      party hereto. Upon receipt of any such Amendment Notice, a party shall have
      thirty (30) days (the “Objection Period”) to accept or reject such Amendment,
      and in the event of the acceptance of any such Amendment or the failure to
      object to such Amendment within such Objection Period, such Amendment shall
      take
      effect immediately upon the expiration of the Objection Period. Any such
      objections to any such Amendment shall be provided in the manner for giving
      notices under this Agreement, and in the event any party gives any such
      objection notice within the Objection Period, the parties shall negotiate in
      good faith to resolve such objection, and upon their failure to do so within
      sixty (60) days from the date of the original Amendment Notice, this agreement
      shall automatically terminate effective as of the close of business on the
      next
      business day following the expiration of the one hundred and twenty (120) day
      notice.

    

    
      
        4.
          PRODUCTS
          COVERED BY THIS AGREEMENT.
          Products will include products
          marketed under the PFG family of brands (“PFG Brands”); national brands;
locally
          controlled labels; other products specified by Customer and stocked by
          PFG
          Florida; (as hereinafter defined) as Proprietary Products; approved by
          Shells
          Seafood Restaurant, Inc. 

      

    

    

    5.
      AGREED
      AVERAGE DROP SIZE; ADDITIONAL CHARGES FOR ORDERS THAT
DO
      NOT MEET MINIMUM ORDER REQUIREMENTS.
      Fee
      pricing provided in Section 6 hereof is based on an average order size of
      $4,000.00 per location per delivery (“Agreed Average Drop Size”) and a maximum
      of two (2) regularly scheduled deliveries per week. Effective after (10/01/05),
      in the event that the average order size for any thirty-day (30) period falls
      below the Agreed Average Drop Size, PFG Florida will give notice to Christopher
      R. Ward, VP of Purchasing,
      and he
      will cause such average order size to equal or exceed the Agreed Average Drop
      Size. In the event that the average order size deficiency is not remedied within
      such thirty (30) day period, PFG Florida shall have the right, which shall
      be
      exercised to modify the Fee pricing terms of this Agreement provided in Section
      6 hereof, consistent with Customer’s actual average order size. The Shells Port
      Charlotte and St. Pete locations are omitted from this clause for the months
      of
      September and December of each year.

    

    In
      addition, individual regularly scheduled orders less than $1000.00 will
      be
      charged an additional $100.00 to offset the additional charges incurred, and
      orders below the minimum order size of $500.00 will be delivered at the
      discretion of PFG Florida and Christopher
      R. Ward, VP of Purchasing
      on a
      case by case basis. This charge will not apply to Will Calls (customer pick-ups)
      or other deliveries made as a result of a PFG Florida error. Exception
      deliveries may be made in the event of emergencies and will be handled on a
      case-by-case basis.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    New
      customer locations added after the inception of the program that are outside
      of
      the distribution centers current coverage area may be assessed a delivery fee
      in
      accordance with actual costs associated with the deliveries for and an
      unspecified time period. PFG Florida deliveries to the following geographic
      area: From Tallahassee East to Jacksonville; South to the greater Miami area;
      West to Naples and back North to Tallahassee with most if not all points in
      between. Any future location outside of the area has to be discussed and decided
      upon what action to take between PFG Florida management and Christopher
      R. Ward, VP of Purchasing.

    

    6.  DISTRIBUTION
      FEE PRICING; DESIGNATED CATEGORIES 

    PFG
      Florida shall distribute Products to Customer Locations in the Designated
      Categories based upon the Fee pricing scheme specified in this Section
      6.

     

    
      	
               Designated
                Categories

            	 	
               Fee

            
	 	 	 
	 Dry Groceries	 	 $2.20 per case
	 Frozen Foods	 	 All Categories
	 Refrigerated Products	 	 
	 Meat / Seafood / Poultry	 	 
	 Non-Food Items	 	 
	 Chemicals	 	 
	 	 	 
	 Fee calculation = (Distributor Cost)
              +
              (Fee)	 	 
	 Example: 	 	 
	
               Distributor
                Landed 

            	 $20.00	 
	 	 $2.20	 
	
               Fee
                Calculation  

            	 ($20.00 + 2.20 = $22.20)	 

    

     

    
      
        7.
           PRICING;
          COST DEFINED; PRICE ADJUSTMENTS.

      

    

    

    
      	
            	A.	
              All
                pricing to Customer is calculated on PFG Distributors’ cost (“Cost”), as
                defined
                below.

            

    

    

    
      	
            	B.	
              “Cost”
                is defined as the price invoiced by the vendor or manufacturer to
                the
                distributor plus applicable freight from the vendor or manufacturer
                less
                off-invoice temporary discounts or promotions during the applicable
                period
                (excluding cash discounts). Products contracted by Customer will
                be billed
                at the contracted Cost plus applicable freight and agreed to Fee.
                Products
                deemed “Weekly” or “Market Items” will be priced by PFG Florida based on
                cost plus fee from Section 6. If electronic data interchange or other
                invoice-less system is used, a printed report or other appropriate
                verification from the supplier confirming the purchase order cost
                will be
                considered an invoice for determining Cost.  

            

    

    

    
      	
            	C.	
              All
                prices on the Order Guides or other price lists provided to Customer
                will
                remain
                valid for the period of the Order Guides or other Price Lists, with
                the
                exception of those commodity or “at market” items that are identified to
                change weekly. In addition, during periods of unusual fluctuations
                (greater than 3% of product cost) PFG Florida may pass on such increases
                to Customer after notification to Christopher
                R. Ward, VP of Purchasing.

            

    

    

    
      	
            	D.	
              All
                approved substitutions will be priced at the cost of the substituted
                item
                plus applicable
                fee.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    8. JOINT
      PURCHASES; SPECIAL ORDERS; RESTOCKING FEE

    

    
      	
            	A.	
              In
                the event that Customer and PFG Florida mutually agree to a forward,
                special or other “joint” purchase on Customer’s behalf that may require a
                purchase of inventory beyond thirty (30) days, PFG Florida will impose
                the
                following grid of charges.

            

    

     

    
      PurchaseGrid

    

    Shells
      Seafood Restaurant, Inc.
      shall
      have the flexibility to enter an agreement with PFG Florida to take advantage
      of
      forward buys, special or joint purchases of up to $2,000,000.00. Stipulations
      to
      this are as follows: 

     

    All
      products must be fully paid to PFG Florida by the 100th
      day in
      inventory. The billings for the value of the products are as follows:

     

    
      	
              In
                house up to 60 days 

            	
              0%
                charge

            
	
              After
                60th
                day

            	
              .15%
                of inventory as storage fee, weekly

            
	
              At
                100 days 

            	
              100%
                of Inventory must be paid

            

    

     

    Fee
      of
      $2.20 will be assessed upon delivery to units, or when the aged product is
      removed from PFG Florida’s warehouse, in addition to any remaining value of
      case.

     

    
      	
            	B.	
              PFG
                Florida may, at its option, agree to accept product returns from
                customers
                for reasons
                other than a PFG Florida error. The returned product must comply
                with
                the
                credit / return policy as outlined in Section 10. To defray additional
                handling expense
                for the return of such products, PFG Florida reserves the right to
                charge
                a restocking
                fee of $2.20 per case. 

            

    

    

    9. ORDERING
      PROCEDURES.
      PFG
      Florida has the ability to coordinate with Shells
      Seafood Restaurant, Inc.’s
      menu
      link system for ordering purposes. Each location will receive an email
      confirmation of orders placed through the IDS system. Customer will be provided
      with monthly Order Guides and weekly Order Guides for “at-market” products. All
      orders are to be placed by the cutoff time indicated in the Operating Procedures
      Manual. 

    

    10. CREDITS.
      Customer is not to return merchandise without written authorization from PFG
      Florida. All requests for return or adjustment of dry groceries must be reported
      within seven (7) days of receipt of merchandise and include the invoice number,
      Customer code and invoice date in order for the Customer to receive the full
      amount of credit due. In the case of frozen merchandise, returns must be
      identified at the time of delivery. Returned merchandise must reach PFG Florida
      in resalable condition and must be packed in its original carton, unless
      Customer is authorized to return merchandise for quality control inspection.
      Merchandise made to order, specially designed, crested or imprinted cannot
      be
      exchanged or returned. Special order (non-stock) merchandise may only be
      returned if packed in original shipping cartons and will be subject to
      transportation and handling charges.

    

    Credits
      shall be granted in accordance with the terms of PFG’S Operating Procedures
      Manual, which shall be customized by PFG Florida for Customer with prior
      approval by Customer. Credit paperwork for Shells
      Seafood Restaurants, Inc.
      will be
      received back from PFG Florida within eighteen (18) working days.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    11. DELIVERY
      AND RECEIVING.
      All
      deliveries will be made in accordance with a prearranged delivery schedule
      designed by PFG Florida to meet Customer needs. An “on-time” delivery is defined
      as being; product was delivered within the established 3-hour time window.
      The
      pricing of this agreement may dictate our need to route deliveries for the
      utmost efficiencies. As such, while PFG Florida will review your customer
      delivery preference, PFG Florida reserves the option to assign specific delivery
      days and / or maintain open delivery windows to your locations. PFG Florida
      will
      establish Holiday delivery schedules at least fourteen (14) days prior to such
      holiday. Customer will receive an original invoice and one copy with each order,
      which shall be checked by an authorized representative of Customer at the time
      of delivery. Should any product be short or damaged, Customer’s authorized
      representative shall notify the PFG Florida driver at the time of delivery.
      PFG
      Florida’s driver will note the discrepancy on the invoice, and credit will be
      taken directly off the invoice.

     

    All
      products warehoused and delivered by PFG Florida personnel cannot exceed a
      maximum weight of 50 pounds per case.

    

    12. ADJUSTMENTS
      IN MARGIN/SURCHARGES IN CONNECTION WITH UNANTICIPATED
      PROBLEMS.
      If the
      operating costs of PFG Florida increase as a direct result of a significant
      regional or national economic problem, including, without limitation, fuel
      cost
      increases and power shortages, PFG Florida may, on the following Monday, impose
      a surcharge on each delivery. The cost of fuel is an important variable cost
      for
      distributors. As such, the following fuel adjustment policy will be implemented
      as follows:

    

    The
      ICC
      Gulf Coast Average Fuel Price Index as reported on the ICC Fuel Hot Line phone
      number 202-586-6966 or Internet site: 

    

    http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

    

    will
      be
      used to determine the price per gallon of fuel. Although there are regional
      differences in the price of fuel, since this is a national average fuel price
      any movement in the national average price of fuel should be reflected in the
      regional price of fuel.

    

    If
      the
      Gulf Coast APFI reaches $1.50 per gallon or greater for four consecutive weeks,
      a surcharge will be implemented. Once implemented the adjustment will remain
      in
      place until there are four consecutive weeks in the normal price range of $1.50
      or below.

    

    
      
        	
                  Surcharge

              
	
                 ICC
                  Fuel Price
                  Index

              	 	
                 Delivery
                  Fee
                  Adjustment

              
	 	 	 
	
                 $0
                  through $1.50

              	 	
                 No
                  Fee Adjustment

              
	
                 $1.51
                  through $1.809

              	 	
                 $2.00
                  per delivery

              
	
                 $1.81
                  through $2.009

              	 	
                 $4.00
                  per delivery

              
	
                 $2.01
                  through $2.199

              	 	
                 $6.00
                  per delivery

              
	
                 $2.20
                  through $2.309

              	 	
                 $8.00
                  per delivery

              
	
                 $2.31
                  through $2.399

              	 	
                 $10.00
                  per delivery

              
	
                 $2.40
                  through $2.499

              	 	
                 $12.00
                  per delivery

              
	
                 For
                  every successive $.10 Per Gal
                  Increase

              	 	
                 Additional
                  $1.00 per
                  delivery

              

      

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    13. CREDIT
      TERMS.
      Subject
      to review and approval, Payment Terms are net thirty (30) days; defined as
      payment received by PFG Florida within thirty (30) days from the date of the
      invoice. Customer(s) agree(s) that payment will be received by PFG Florida
      within established payment terms. 

    

    Payment
      will be made from PFG via credit memo within 30-days from close of the
      respective measurement period upon received payment. No invoice deductions
      will
      be permitted.

    

    In
      the
      event of Customer’s failure to make payment in accordance with the payment terms
      specified in the preceding sentence, PFG Florida may (in addition to any other
      remedies) with 5 day written notice provided for herein to Customer and/or
      discontinue service and PFG Florida may terminate this Agreement on the seventh
      (7th)
      day.
      Any changes in financial conditions for licensee will be communicated to
Christopher
      R. Ward, VP of Purchasing; he
      will
      notify PFG Florida of any changes in corporate or licensee financial
      circumstances. 

    

    
      	
            	A.	
              Payment
                Obligation: PFG
                Florida may modify payment terms if payments
                are not made when due and/or the financial condition of the Customer
                materially changes.

            

    

    

    
      	
            	B.	
              Service
                Charge: If
                invoices are not paid when due, a service charge equal to lesser
                of 1 1/2% per month or the maximum interest rate permitted by law
                may be
                assessed on the unpaid portion of any such overdue invoice. Unpaid
                invoice
                balances and finance charges due to PFG Florida may be deducted from
                and/or offset against any credits otherwise due to Customer. Customer
                agrees to pay all expenses including, but not limited to, reasonable
                attorney’s fees incurred in connection with any successful enforcement by
                PFG Florida of amounts owed to PFG Florida by customer(s) under this
                agreement.

            

    

    

    
      	 	
              C.
                

            	
              Financial
                Information: Customer
                agrees to provide on a quarterly basis or promptly following receipt
                of a
                written request therefor from PFG Florida, such additional financial
                information, including, without limitation, audited financial statements,
                statement of cash flow and/or any such other financial information
                requested by PFG Florida. Such information will only be available
                in
                accordance with filing requirements of
                SEC.

            

    

    

    14. AUDIT
      PRIVILEGES.
      Customer shall have the right, at Customer’s sole expense, to audit records of
      PFG Florida related to Customer under this Agreement; provided, however, that
      any such audits shall be subject to following limitations: (i) date and time
      of
      audit shall be mutually agreed upon following weeks written notice from Customer
      of its audit request; (ii) Customer shall not be entitled to audit PFG Florida
      more than twice in any twelve month period; (iii) any such audits shall be
      conducted between business hours of 8 a.m. and 5 p.m. Monday through Friday
      and
      without any unreasonable disruption PFG Florida’s business or year-end
      accounting procedures; and (iv) any such audit will consist of a maximum of
      35
      items covering the prior 13 week period immediately preceding the audit request.
      (v.) All documentations will be kept on PFG Florida property. No photocopies
      will be permitted to leave PFG Florida property.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    15.  SPECIAL
      CUSTOMER PRICING / DEVIATED COST PROGRAMS.
      PFG
      Florida agrees to maintain deviated cost or special pricing programs that have
      been negotiated directly between Customer and the vendor community. PFG Florida
      will only maintain those deviated cost programs documented by the vendor and
      communicated to PFG Florida in writing. The communication shall, at a minimum
      contain:

    

    
      	a.  	
              Lead
                time of ten (10) working days

            

    

    
      	b.  	
              Program
                start and end dates

            

    

    
      	c.  	
              Vendor
                letterhead and vendor contact
                information

            

    

    
      	d.  	
              Signature
                of authorized vendor representative

            

    

    
      	e.  	
              Items
                and applicable pricing information including UPC
                information

            

    

    
      	f.  	
              Authorization
                for PFG Florida to implement this special
                pricing

            

    

    

    16. PROPRIETARY
      PRODUCTS.
      PFG
      Florida will deliver products requested and specified by Customer that are
      proprietary to Customer’s operations (“Proprietary Products”) and special orders
      by Customer under the conditions specified in the following provisions of this
      Section 16. PFG Florida will not bring into stock any product or lines of
      product for Shells
      Seafood Restaurant, Inc.
      Locations unless Christopher
      R. Ward, VP of Purchasing,
      has
      authorized, in writing, such action. If Customer approves and authorizes
      products not currently in existing inventory, the following minimum guidelines
      will apply to any new products brought into stock:

    

    
      	 	
              A.

            	
              PFG
                Florida shall not be required to stock any Special Order or Proprietary
                Product that does not have or will not have average weekly sales
                of 10
                cases and 15 annual turns per participating distribution center.
                Christopher R. Ward VP of Purchasing will allow PFG Florida to present
                products already stocked in
                inventory.

            

    

    

    
      	 	
              B.

            	
              Customer
                will sign a special stocking request
                form.

            

    

    

    
      	 	
              C.

            	
              Customer
                shall provide PFG Florida with a minimum of 21days notice in connection
                with any request by Customer to bring in any new normally stocked
                items.
                Further, customer shall provide PFG Florida with a minimum of four
                weeks’
                notice on special order items. PFG Florida cannot guarantee that
                the
                minimum notice periods provided for in the two preceding sentences
                will be
                sufficient, and PFG Florida shall not be responsible for or be deemed
                to
                be in default of this Agreement by virtue of the inability to obtain
                items
                within such minimum notice periods. However, PFG Florida shall be
                required
                to use commercially reasonable efforts to obtain such items within
                the
                prescribed notice periods.

            

    

    

    
      	 	
              D.

            	
              If
                PFG Florida has not previously purchased from the supplier/manufacturer
                designated by Customer, a certificate of insurance indicating coverage
                that satisfies PFG’S required coverage and an appropriate indemnification
                from supplier/manufacturer must be provided before any product can
                be
                brought into inventory. If the specified supplier/manufacturer will
                not
                issue an appropriate certificate of insurance and/or provide appropriate
                indemnification, Customer agrees to provide such required insurance
                to PFG
                Florida and to indemnify and hold harmless PFG
                Florida.

            

    

    

    
      	
            	E.	
              In
                the event (i) Customer decides to discontinue any Proprietary Product
                or
                products
                subject to special orders or (ii) Customer gives or receives notice
                of
                termination of this Agreement, Customer shall provide notice thereof
                to
                PFG Florida within 30 days in accordance with the notice provisions
                of
                this Agreement.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
    

     

    
      	 	
              F.

            	
              Upon
                thirty (30) days of notice of a request from PFG Florida, Customer
                agrees
                to purchase or advise PFG Florida how to dispose of such products
                that
                constitute remaining special order or Proprietary Products inventory
                on
                hand that does not meet the minimum stocking requirements listed
                in
                Section 16(A) hereof. Refer to Section 8
                A.

            

    

    

    
      	 	
              G.

            	
              In
                the event this agreement is terminated by either party hereto, Customer
                agrees (i.) to use commercially reasonable efforts to effect an orderly
                transition with respect to and (ii) to remove from the distribution
                centers for all PFG Distributors within 21 days of the termination
                date,
                all Proprietary Products, special order products, obsolete inventory,
                other applicable products in stock, and products for which non-cancelable
                orders have been placed. All items will be FOB distribution center,
                and
                Customer or new distributor will pay for all such inventory and all
                freight in connection with the disposition of all such Products.
                Payment
                for this inventory transition will be made within 30 days of the
                invoice
                date.

            

    

    

    17. Support
      Services. PFG
      Florida will provide the following additional support services to Shells
      Seafood Restaurant, Inc.

    

    
      	
            	A.	
              PFG
                Florida will assign an Account Executive and a Customer Service
                Representative
                to handle the day-to-day management of the Shells
                Seafood Restaurant,
                Inc.
                account.

            

    

    

    
      	
            	B.	
              Service
                Levels.
                PFG distributors will perform at fill rate of 98.5% or above including
                substitutions. Service Level Benchmarks will be mutually developed
                between
                Shells
                Seafood Restaurant, Inc.
                and PFG Florida to measure performance. Recovery deliveries will
                be made
                as required. The cost of the recovery delivery will be the responsibility
                of the distributor or Shells
                Seafood Restaurant, Inc.
                depending on the source of the
                error.

            

    

    

    
      	
            	C.	
              QC
                Procedures/Test Kitchen:
                Shells
                Seafood Restaurant, Inc.
                has a full Quality Control/Assurance program in place. All seafood
                items
                as well as other protein products as necessary. Upon PFG Florida’s receipt
                of these products, they will automatically be placed on a “Pending” status
                until they are tested and released by the QC Manager. Shells
                Seafood Restaurants, Inc.
                does not always use product on a first in first out basis when it
                comes to
                protein items. PFG Florida must have flexibility to ship items out
                of
                sequence, frequently. PFG Florida will make test kitchen on premises
                available for QC Manager; 12 business hours per week during normal
                business hours of 8 am - 5pm, Monday through Friday. PFG Florida
                will
                provide a designated mailbox for copies of all bills of ladings and
                other
                important items, for the QC Manager or Shells Purchasing department
                upon
                receipt of product. PFG Florida will also make available a phone
                line in
                the test kitchen. 

            

    

    

    
      	
            	D.	
              Vendor
                Returns: PFG
                Florida will charge Shells Seafood Restaurant, Inc. of $1.10 fee
                per case
                for all items returned to vendor that are revealed at the warehouse
                level.
                All cases needing to be picked up from individual unit locations
                to be
                returned to vendor Shells Seafood Restaurants, Inc. will be charged
                a
                $2.20 fee per case. These fees apply to any item(s) returned due
                to
                Quality Control Inspections. A joint letter from PFG Florida and
                Shells
                Restaurants will inform the appropriate vendors of this stipulation.
                

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    18. FORCE
      MAJEURE.
      Neither
      party shall be liable to the other party for any loss, delay or failure to
      perform resulting directly or indirectly from fires, floods, riots, strikes
      or
      other circumstances beyond either party’s reasonable control.

    

    
      
        19.
          COMPLIANCE
          WITH LAWS.
          Each
          party hereto agrees that it will comply with all laws
          and
          regulations applicable to this Agreement and its performance hereunder.
          Without
limiting
          the foregoing, Customer agrees to fully and accurately report to the appropriate
          federal
          and state agencies and authorities all discounts (as such term is defined
          in 42
          CFR Sec 

      

    

    1001.952
      (h)) granted hereunder in accordance with all applicable laws and
      regulations

    

    20. REPORTING/
      DATA INTERCHANGE.
      In
      addition to monthly and weekly Order Guides, PFG will provide Monthly or
      Quarterly Standardized Usage Reports as requested by Shells
      Seafood Restaurant, Inc.
      PFG
      Florida will not provide any Shells Seafood reports to any other party with
      out
      written consent from Christopher R. Ward, VP of Purchasing or Shells Seafood
      Restaurant, Inc. 

     

    
      	
            	A.	
              In
                addition to standard reports the following reports will be sent to
                the
                Shells
                Seafood Restaurant,
                Inc.
                Purchasing Department weekly/monthly as
                needed.

            

    

    

    
      	1.  	
              Usage
                by Month, rolling YTD by Vendor

            

    

    
      	2.  	
              Descending
                dollar by item.

            

    

    
      	3.  	
              Descending
                dollar by vendor.

            

    

    
      	4.  	
              Monthly
                Service Level Report.

            

    

    
      	5.  	
              Monthly
                Order Guides (Must be sent to restaurant locations
                also)

            

    

    
      	6.  	
              Weekly
                Price Changes (must be sent to restaurant locations
                also)

            

    

    
      	7.  	
              Weekly
                Lot Listing (All Protein Items)

            

    

    
      	8.  	
              All
                reports need to be electronically
                submitted.

            

    

    

    21. NOTICES.
      Any
      written notices called for in this agreement may be made by facsimile, personal
      delivery, overnight or other delivery service or first class mail to and
      confirmed by Christopher R. Ward, VP of Purchasing. Notices by fax will be
      effective when the transmission is complete and confirmed; notices by personal
      delivery will be effective upon delivery; notices by overnight or other delivery
      services will be effective when delivery is confirmed; notices by mail will
      be
      effective four business days after mailing. The notice address for each party
      is
      set forth below and shall be subject to change upon written notice thereof
      in
      accordance with the provisions of this Section 21.

    

    22. CHOICE
      OF LAW/ VENUE.
      This
      Agreement, including, without limitation, any dispute or claim hereunder, shall
      be governed by and construed in accordance with the laws of the State of Florida
      without reference to the choice of law provisions of any state. Further, the
      parties hereby agree that any and all actions or proceedings arising from or
      relating to this Agreement shall be brought in the Circuit Court Hillsborough
      County, Florida, or the United States District Court of Tampa, Florida Division
      and hereby consent to personal jurisdiction of such courts for any such action
      of proceeding. All fees related to any arbitration or court actions will be
      the
      responsibility of the losing party to settle.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    23. LIMITATION
      OF LIABILITY.
      PFG
      shall
      not be liable to the Customer for any special, indirect, incidental,
      consequential or punitive damages arising out of or relating to this Agreement
      under any legal theory. 

    

    24. MISCELLANEOUS.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which together will constitute one and the same
      instrument. PFG and Customer have participated jointly in the negotiation and
      drafting of this Agreement. In the event an ambiguity or question of intent
      or
      interpretation arises, this Agreement shall be construed as if drafted jointly
      by the parties, and no presumption or burden of proof shall arise favoring
      or
      disfavoring any party by virtue of the authorship of any of the provisions
      of
      this Agreement. Any reference to any federal, state, local, or foreign statute
      of law shall be deemed also to refer to all rules and regulations promulgated
      thereunder, unless the context requires otherwise. The parties intend that
      each
      representation, warranty and covenant contained herein shall have independent
      significance. All such exhibits, schedules and other documents, or portions
      thereof, identified in this Agreement are incorporated herein by reference
      and
      made a part hereof. At either party’s reasonable request and without further
      consideration, the other party shall promptly execute and deliver such
      instruments and documents, and take such other action, as such party may
      reasonably request to effectuate completely the transactions provided for in
      this Agreement and to otherwise carry out the purpose and intent of this
      Agreement. The failure of any of the parties to this Agreement to require the
      performance of a term or obligation under this Agreement or the waiver by any
      of
      the parties to this Agreement of any breach hereunder shall not prevent
      subsequent enforcement of such term or obligation or be deemed a waiver of
      any
      subsequent breach hereunder. If any one or more of the provisions of this
      Agreement is held to be invalid, illegal or unenforceable, the validity,
      legality or enforceability of the remaining provisions of this Agreement will
      not be affected thereby, and the parties will use all reasonable efforts to
      substitute for such invalid, illegal or unenforceable provision(s) one or more
      valid, legal and enforceable provision(s) that, insofar as practicable,
      implement the purposes and intents hereof. To the extent permitted by applicable
      law, each party waives any provision of law that would render any provision
      of
      this Agreement invalid, illegal or unenforceable in any respect. No remedies
      set
      forth herein shall be exclusive and no party shall be limited to any remedy
      set
      forth herein. All remedies available to any party shall be cumulative.
This
      Agreement may not be amended or modified, nor may compliance with any condition
      or covenant set forth herein be waived, except by a writing duly and validly
      executed by each party hereto, or in the case of a waiver, the party waiving
      compliance.
      The
      titles and/or captions contained in this Agreement are included for convenience
      only and in no way define or limit any of the provisions hereof or otherwise
      affect their construction or effect. The masculine, feminine or neutral gender
      and singular or plural nouns shall each to be deemed to include the others
      whenever the context so indicates.

    

    25. ENTIRE
      AGREEMENT.
      This
      agreement sets forth the complete understanding of the parties hereto with
      respect to the subject matter contained herein, and may not be amended or
      supplemented; except in writing signed by both parties.

    

    

    [SIGNATURES
      APPEAR ON FOLLOWING PAGE]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    Agreement
      between

    Shells
      Seafood Restaurant, Inc.
      and Performance Food Group Florida 

    

    

    ACCEPTED
      BY

     

    
      	Shells Seafood Restaurant,
              Inc.: 	 	Performance Food
              Group:
	
              Warren Nelson

              Chief Financial Officer

              16313 N. Dale Mabry Hwy #100

              Tampa, FL 33618

            	 	
              William Terry

              Vice President Business Development 

              3150 N. Gallagher Rd.

              Dover, FL 33527

            
	 	 	 
	813-961-0944	 	813-659-0811
	813-964-1314 	 	813-659-3502
	 	 	 
	Warren R. Nelson	 	William Terry
	(Please Print)	 	(Please Print)
	 	 	 
	/s/ Warren R. Nelson	 	/s/ William Terry
	(Signature)	 	(Signature)
	 	 	 
	Chief Financial Officer	 	Vice President
	(Title)	 	(Title)
	 	 	 
	10/20/2005	 	10/20/2005
	(Date)	 	(Date)

    

     

    11

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