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Business Development --------------------

Surge was incorporated under the laws of the State of New York on November 24, 1981. Surge, a supplier of electronic products and components, completed an initial public offering of its securities in 1984 and a second offering of its securities in August 1996. Challenge, a New York corporation formed in 1988 and a wholly-owned subsidiary of Surge, is a broker and distributor of electronic components. Superus, a Delaware corporation, was formed in March 2000 to ultimately become a Delaware parent holding company through the proposed merger of Surge with and into Superus (which did not occur)....