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                                                                    EXHIBIT 10.2

                         SALES REPRESENTATIVE AGREEMENT

      This Sales Representative Agreement (the "Agreement") is made and entered
into as of March 31, 2005 (the "Effective Date"), by and between MOBILITY
ELECTRONICS, INC., a Delaware corporation and its affiliates having its
principal office at 17800 N. Perimeter Dr., Suite 200, Scottsdale, Arizona 85255
("Mobility") and RADIOSHACK CORPORATION, a Delaware corporation, and its
affiliates having its principal office at 300 RadioShack Circle, Fort Worth,
Texas 76102 ("Sales Rep"). Mobility and Sales Rep are sometimes each referred to
herein as a "Party" and collectively, as the "Parties".

      1. FORMATION OF DIVISION.

            (a) Formation. Effective as of the Effective Date, Mobility will,
for purposes of this Agreement, form a division of Mobility for the purpose of
designing, developing, manufacturing, marketing and selling iTip Products (the
"Division"). The Parties acknowledge and agree that the Division will not be a
separate legal entity, but will be part of Mobility.

            (b) Resources and Expenses. The Division will utilize employees and
resources of Mobility, but will maintain its own accounting records. The
Division will be allocated the cost of dedicated personnel, resources and
expenses (the "Direct Expenses"), a percentage of the cost of intellectual
property filings, defense, enforcement and protection that is related to iTip
Technology (the "IP Expenses") as provided below and a reasonable portion of any
Mobility shared personnel, resources and expenses incurred on behalf of the
Division (the "Indirect Expenses"); it being agreed and understood that: (i) all
Permitted Sales Revenues (as defined below), cost of goods sold, and Direct
Expenses shall be determined in accordance with generally accepted accounting
principles, consistently applied ("GAAP"); (ii) 50% of the IP Expenses shall be
allocated to the Division, and (iii) a reasonable portion of the quarterly
Indirect Expenses shall be allocated to the Division; provided, however, that
notwithstanding the above, the total sales, marketing, research and development
and general and administrative expenses, Indirect Expenses and IP Expenses of
the Division (excluding the iTip Products Commission (and any similar commission
to any other sales representative of Mobility)) (the "Total Operating Expenses")
shall not exceed (1) if the Permitted Sales Revenues of the Division for any
calendar year is less than $50 million, thirty percent (30%) of the Permitted
Sales Revenue of the Division for such calendar year; (2) if the Permitted Sales
Revenue of the Division for any calendar year is at least $50 million but less
than $100 million, the lesser of (A) twenty five percent (25%) of the Permitted
Sales Revenue of the Division for such calendar year, or (B) the percentage
equal to Mobility's overall sales, marketing, research and development, and
general and administrative expenses as compared to its overall revenues (net of
returns and allowances) for such calendar year (for each calendar year, the
"Maximum Overall Operating Expense Percentage"); (3) if the Permitted Sales
Revenue of the Division for any calendar year is $100 million or more, the
lesser of (A) twenty percent (20%) of the Permitted Sales Revenue of the
Division for such calendar year, or (B) the Maximum Overall Operating Expense
Percentage for such calendar year. The limitations set forth in (1), (2) and (3)
of the previous sentence being collectively referred to as the "Maximum
Percentages".

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            (c) Management. The Division will be under the management and
control of Mobility.

      2. ENGAGEMENT OF SERVICES.

            (a) Generally. Sales Rep will serve as Mobility's non-exclusive,
worldwide representative for the sale of Mobility's Computer Products and
Mobility's iTip Products (collectively, the "Mobility Products"). For purposes
of this Agreement:

                  (i) "Computer Products" means Mobility's existing line of
            universal power products for computers (including notebook, laptop,
            handheld, tablet computers and the like, but excluding personal
            digital assistants, wireless internet (or e-mail devices),
            smartphones and the like (the "Portable Computers")) and all future
            versions (including expanded functionality), modifications,
            enhancements, and derivatives to such products, and any new
            universal power product for Portable Computers which is 60 watts or
            more in power and is offered for sale by Mobility from time to time.
            Such products may also include features for charging non-computer
            mobile electronic devices. Some of the current Computer Products
            currently offered for sale by Mobility are listed in Exhibit B
            attached hereto.

                  (ii) "iTips" means any tip, cord or removable or
            interchangeable item that utilizes iTip Technology to remotely
            program a power product (including the remote programming of any
            iTip Product) to correctly determine and provide the appropriate
            voltage, current and/or power requirements for the purpose of
            operating or charging the battery for an electronic device (e.g.,
            cell phones, PDA's, digital cameras, MP3 players, CD players, and
            the like).

                  (iii) "iTip Products" means Mobility's existing line of
            universal power products for use with mobile electronic devices and
            all future versions (including expanded functionality),
            modifications, enhancements, and derivatives to such products, and
            any new universal power products offered for sale by Mobility from
            time to time, which: (i) are 70 watts or less in power; (ii) utilize
            iTip Technology; and (iii) cannot be used to power or charge a
            Portable Computer. Some of the current iTip Products currently
            offered for sale by Mobility are listed in Exhibit B attached
            hereto.

                  (iv) "iTip Technology" means the underlying iTip, combination
            AC/DC, simultaneous charging and other related Intellectual Property
            Rights (as defined below) of Mobility that are incorporated into the
            iTips and products of Mobility that utilize iTips, including, but
            not limited to, the patents and patents pending listed on Exhibit A
            attached hereto.

            (b)   Sales Channels and Territory.

                  (i) Sales Rep shall have the worldwide right to act as
            Mobility's sales representative for the sale of Mobility Products;
            provided, however, that in the event of any channel conflict issues
            affecting Sales Rep, Mobility shall consult with Sales Rep regarding
            such issues and give due consideration to the input

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            provided by Sales Rep. Mobility shall then resolve such issues in a
            manner which considers the interests of all Parties and third
            parties involved in the channel conflict issue (including, without
            limitation, consideration of Sales Rep's pre-existing relationships
            with its customers). In the event that Sales Rep does not accept
            Mobility's resolution of the channel conflict issue, Sales Rep can
            appeal such decision to the Chief Executive Officer, President or
            Chief Operating Officer of Mobility, who shall make the final
            determination of such channel conflict issue. If following such
            final determination Sales Rep still does not accept such resolution,
            Sales Rep may terminate this Agreement without liability upon
            written notice to Mobility, in which event, this Agreement shall be
            null and void and of no further force or effect. Notwithstanding
            anything in this Agreement to the contrary, Sales Rep will not have
            the right to sell Computer Products to the customers identified in
            Exhibit C attached hereto, except as approved in advance in writing
            by Mobility from time to time. Sales Rep will use good faith efforts
            to market the Mobility Products through: (1) the RadioShack Channels
            (as defined below); [*] and (iv) to other persons as agreed to by
            the Parties from time to time.

                  (ii) [*] The Parties agree that for a thirty (30) day period
            following the Effective Date, the Parties will use reasonable
            commercial efforts to develop a mutually agreeable plan for the
            Parties to pursue the European retail market for "iGo" branded
            Mobility Products; it being agreed and understood that Mobility's
            Chief Executive Officer will be involved in such efforts, as well as
            appropriate representatives of Sales Rep.

            (c) Sales Policies. All sales activities conducted by Sales Rep
pertaining to the Mobility Products will be in accordance with the sales
policies of Mobility, which sales policies are attached hereto as Exhibit D
(which sales policies may be changed by Mobility from time to time after prior
written notice to, and notice and consultation with, Sales Rep). In the event
that Sales Rep does not accept any change made by Mobility to its sales policy,
Sales Rep can appeal such decision to the Chief Executive Officer, President or
Chief Operating Officer of Mobility, who shall make the final determination of
such sales policy change. If following such final determination Sales Rep still
does not accept such sales policy change, Sales Rep may terminate this Agreement
without liability upon written notice to Mobility, in which event, this
Agreement shall be null and void and of no further force or effect. All orders
for the Mobility Products shall be solicited at prices specified by Mobility.
Sales Rep acknowledges specifically that all sales solicitations are to be made
on the basis of Mobility's sales policy as provided in Exhibit D, as may be
changed as provided above.

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* Confidential information on this page has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a Confidential Treatment
Request.

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            (d) Sales Orders. All sales orders and agreements relating to the
purchase of Mobility Products shall be subject to approval by Mobility, and all
contracts and purchase orders shall be executed and placed with Mobility.
Mobility's approval of a sales order or agreement relating to the purchase of
Mobility Products shall be based primarily on Sales Rep's compliance with
Mobility's sales policies. Sales Rep shall promptly notify Mobility with respect
to any and all customers who are interested in purchasing Mobility Products, and
any and all potential customer issues. If Sales Rep desires pre-approval by
Mobility of a sales order for a particular potential customer, Mobility shall,
upon the request of Sales Rep, provide Sales Rep certain terms and conditions
for such pre-approval (e.g., quantity, price, payment terms and delivery
schedule). Notwithstanding anything to the contrary contained in this Agreement,
no order for Mobility Products shall be binding unless accepted in writing by an
authorized representative of Mobility (except that any pre-approved conditions
quoted by Mobility to Sales Rep for a particular potential customer for a
specified order shall be binding upon Mobility for that particular customer
pertaining to such specified order).

            (e) Collection Activities. Mobility shall be responsible for the
collection of all accounts receivable relating to the sale of Mobility Products,
but Sales Rep agrees to provide reasonable assistance to Mobility in this area
for customers of Mobility managed by Sales Rep (e.g., making phone calls,
requesting payment and/or other communications with the customer) as reasonably
requested by Mobility from time to time.

            (f) Rolling Forecast. Mobility and Sales Rep will work together to
formulate, on a monthly basis, a detailed, non-binding, rolling 12-month
forecast for: (i) Sales Rep's sales of Mobility Products (broken-down by
product, customer and geography) on behalf of Mobility; and (ii) Mobility's
manufacturing and delivery schedule and backlog, with the first forecast being
completed on or prior to April 30, 2005.

            (g) Customer Support and Other Product Issues. Except as otherwise
specified herein, Mobility shall be responsible for all Mobility Product related
issues (and expenses), including, without limitation, technical support and
warranty issues. Furthermore, Sales Rep will not hold any inventory under this
Agreement nor will Sales Rep be responsible for any costs of distribution
programs established by Mobility. Notwithstanding the above, all of the costs
and expenses described above in this subsection (g) shall be considered costs
and expenses of the Division and shall be paid for by the Division.

            (h) Representations and Warranties. Mobility represents and warrants
that it is under no obligation or restriction, and it will not assume or incur
any such obligation or restriction, that does or would in any material way
interfere or conflict with the performance of this Agreement by Mobility.
Mobility represents and warrants that (i) it has and will have full and
sufficient title and/or right and interest to the Mobility Products and
underlying technology to grant the rights to Sales Rep that are granted pursuant
to this Agreement; and (ii) neither the execution or performance by Mobility of
this Agreement, nor the consummation of any transactions contemplated herein
does or will (a) violate any law, order, regulation or ruling applicable to
Mobility, or (b) infringe any intellectual or other property, personal or
contract rights of any third party. To the extent permitted under Regulation FD,
Mobility agrees to promptly inform Sales Rep upon the occurrence of: (i)
Mobility's receipt of any third party intellectual property infringement claims
and any third party material lawsuits, in either case,

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which affects the Division or the iTip Technology; (ii) any change to the
composition of Mobility's senior management team; and (iii) any decision by
Mobility to undergo a Change in Control (as defined in Section 8(b)) or to enter
into a joint venture, partnership or acquire all or substantially all of the
assets of a third party, in any case, which affects the Division or the iTip
Technology.

            (i) Most Favored Sales Representative. Mobility represents and
warrants that it will not enter into any sales representative agreement related
to iTip Products which provides for a "profits participation" type of sharing
arrangement similar to that of Section 3(a) below on terms and conditions more
favorable than those set forth in this Agreement.

      3. COMMISSIONS.

            (a) Commissions for iTip Products. Mobility will pay Sales Rep a
commission, payable on a calendar quarterly basis, equal to twenty-four and one
half percent (24.5%) of the "Pre-Commission EBIT" earned by the Division during
each calendar quarter (collectively, the "iTip Products Commission"); provided,
however, if Pre-Commission EBIT for any period is a negative number (i.e., a
loss for such period) (an "EBIT Loss"), then the EBIT Loss shall be allocated
entirely to Mobility, and for any subsequent period(s) in which there is a
positive pre-Commission EBIT, Mobility shall be allocated all of such
Pre-Commission EBIT until Mobility recovers all EBIT Loss previously allocated
to Mobility. For purposes of calculating the Commission, the following terms
shall have the following meanings:

                  (i) "Pre-Commission EBIT" means Permitted Sales Revenues of
            the Division for iTip Products less: (1) returns and allowances for
            iTip Products; (2) cost of goods sold of the Division for iTip
            Products (excluding cost of goods sold for products where the
            revenue is excluded from the definition of Permitted Sales Revenue
            (as provided in such definition)); (3) the Direct Expenses of the
            Division; (4) the IP Expenses; and (5) the Indirect Expenses of the
            Division.

                  (ii) "Permitted Sales Revenues" means all revenues (including
            without limitation, licensing revenues and sales revenues) of the
            Division for iTip Products and/or iTip Technology, excluding: (1)
            the Computer Portion of the sales revenues attributable to any
            product that is an iTip Product, but is bundled with any one or more
            Computer Products; and (2) revenues generated from the sale of the
            products through the RadioShack Channel during the transition period
            as provided for in Exhibit E attached hereto. As used above, (i)
            "Computer Portion" shall mean that portion of sales revenue for the
            bundled product multiplied by a fraction, the numerator of which
            shall be the manufactured suggested retail price of the Computer
            Product contained in such bundled product, and the denominator of
            which shall be the manufactured suggested retail price of the iTip
            Product portion of the bundled product plus the manufactured
            suggested retail price of the Computer Product contained in such
            bundled product (provided, however, that the portion remaining after
            excluding the Computer Portion must be greater than the
            manufacturing cost of the iTip Product portion of the bundled
            product); and (ii) "RadioShack Channels" shall mean RadioShack
            Corporation's retail stores (including its dealer/franchise stores,
            but excluding its Sam's Club

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            program, and its Sprint kiosk program) in the United States and its
            territories and Mexico, and RadioShack.com.

            (b) Commissions for Computer Products. Mobility will pay Sales Rep a
commission, payable on a calendar quarterly basis, equal to three percent (3.0%)
of the sales price (net of returns and allowances) for any Computer Product sold
by Sales Rep under this Agreement during each calendar quarter; provided,
however, for any Computer Product bundled with any iTip Product, such commission
shall be reduced by the three percent (3.0%) of the iTip Portion (the "Computer
Products Commission", and collectively with the iTip Products Commission, the
"Commissions"). As used above, "iTip Portion" shall mean that portion of sales
revenue for the bundled product multiplied by a fraction, the numerator of which
shall be the manufactured suggested retail price of the iTip Product contained
in such bundled product, and the denominator of which shall be the manufactured
suggested retail price of the iTip Product portion of the bundled product plus
the manufactured suggested retail price of the Computer Product contained in
such bundled product.

            (c) Payments. Within twenty (20) days after the end of each calendar
quarter, Mobility shall provide a report to Sales Rep setting forth the
Commission due to Sales Rep for such calendar quarter (the "Commission Report"),
and shall pay such Commissions concurrent with the delivery of the Commission
Report.

            (d) Audit Rights. Mobility agrees to make and maintain such books,
records and accounts as are reasonably necessary to verify the accuracy of the
Commissions payments made to Sales Rep. Mobility agrees that it will, at the
sole expense of Sales Rep, permit Sales Rep's auditors to have reasonable access
to Mobility's business records and books of account, upon at least five (5)
business days' prior notice and no more than once during each fiscal year,
during Mobility's normal business hours for the purpose of determining whether
the appropriate Commissions have been made to Sales Rep for the prior 12-month
period. If any such audit discloses that Mobility has underpaid Sales Rep,
Mobility agrees to pay any shortfall within thirty (30) days; provided, however,
if Mobility disagrees with any underpayment, Mobility will direct its auditors
to engage in discussions with Sales Rep's auditors in order to reach a mutually
agreeable resolution of the issue. If any such audit discloses an underpayment
of over five percent (5%) of amounts otherwise owed to Sales Rep, Mobility shall
reimburse Sales Rep for the reasonable costs of the audit. If any audit
discloses any overpayment to Sales Rep by Mobility, Sales Rep shall refund the
amount of such overpayment within thirty (30) days. Notwithstanding anything to
the contrary contained in this subsection (d), if during a calendar year the
Total Operating Expenses (expressed as a percentage of the Permitted Sales
Revenue of the Division) do not exceed the Maximum Overall Operating Expense
Percentage for such calendar year, then in no event may Sales Rep audit or
question any determination by Mobility to incur a particular cost or expense or
take a particular action (e.g., hire personnel, purchase equipment, develop a
product, sue for intellectual property infringement, etc); although Sales Rep
may audit whether the allocation was proper.

            (e) Commissions Adjustments. Returns, allowances, other deductions
from the sale price, or any other adjustments to the Commissions calculations
shall be debited or credited, as appropriate, during the calendar quarter in
which they arise.

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      4. EXPENSES. Mobility shall have no liability for any expenses that may be
incurred by Sales Rep to carry out its obligations under this Agreement. Sales
Rep agrees that it shall incur no expense chargeable to Mobility except as may
be specifically authorized in advance and in writing by an authorized officer of
Mobility.

      5. MARKETING MATERIALS. Mobility will provide, without cost to Sales Rep,
reasonable supplies of standard advertising literature and samples which
Mobility deems to be required to encourage and facilitate the sale of the
Mobility Products. In the event that a customer or potential customer desires or
requires specialized marketing materials and/or advertising allowances in order
to undertake a marketing or advertising program involving Mobility Products,
Mobility and Sales Rep shall work together to determine the extent of Mobility's
financial commitment thereto, if any; it being the intent of the Parties that
Mobility will incur such types of expenses in situations where it is
economically justified or "standard practice" (e.g., carrier co-op programs).
Such commitments by Mobility will be deemed Direct Expenses of the Division.

      6. NON-COMPETITION AND RESTRICTED ACTIVITIES.

            (a) Sales Rep agrees that during the Term it will not manufacture,
have manufactured, offer to sell, sell, market or distribute any product that is
a "Competitive Functional Equivalent". As used herein, "Competitive Functional
Equivalent" shall mean any product that incorporates or utilizes iTip
Technology.

            (b) Sales Rep hereby agrees that for so long as Sales Rep and/or its
Affiliates own any securities of Mobility, Sales Rep will not, and will not
cause or permit an Affiliate of Sales Rep to, directly or indirectly: [*].

            (c) As used above, an "Affiliate" of any Party means any
corporation, entity or person controlling, controlled by , or under common
control with such Party.

      7. INDEPENDENT CONTRACTOR RELATIONSHIP. The relationship of Sales Rep to
Mobility shall be that of special representative for purposes of sales
solicitation. Sales Rep shall not be considered the agent or legal
representative of Mobility for any purpose, except as provided herein, and no
officer, agent or employee of Sales Rep shall be considered as having employee
status with Mobility. Sales Rep shall remain, for all purposes, an independent
contractor and nothing in this Agreement shall constitute Sales Rep as an agent,
representative, subsidiary, joint venture, partner, employee, or servant of
Mobility for any purpose whatsoever. Sales Rep is not granted the right of
authority to assume, or to create any obligation or responsibility, express or
implied, on behalf of, or in the name of, Mobility, except as may be provided
herein, or as may specifically be authorized in writing by an authorized
official of Mobility.

      8. TERM AND TERMINATION.

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* Confidential information on this page has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a Confidential Treatment
Request

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            (a) Initial Term. This Agreement shall be effective as of the
Effective Date and shall remain in effect for fifteen (15) years following the
Effective Date (the "Initial Term"). Thereafter, this Agreement shall
automatically renew for subsequent one year periods (each, a "Renewal Term"),
unless either Party terminates this Agreement by written notice to the other
Party at least one hundred and twenty (120) days prior to the end of the Initial
Term or any Renewal Term. The Initial Term and any Renewal Term(s) are
collectively referred to herein as the "Term". Notwithstanding anything in this
Agreement to the contrary: (i) Sales Rep may terminate this Agreement upon
written notice to Mobility at any time after five (5) years following the
Effective Date, in which case, all terms and provisions of this Agreement shall
terminate and be of no further or effect; and (ii) if this Agreement expires at
the end of any Initial Term or Renewal Term or is terminated by Sales Rep after
the Initial Term then the provisions of Sections 3(a), (c), (d) and (e) and
Section 6, as well as the applicable definitions in this Agreement, shall
survive such expiration or termination, unless Sales Rep provides a written
notice to Mobility at the time of such expiration or termination that Sales Rep
elects to terminate the provisions of Sections 3(a), (c), (d) and (e) above, in
which event all terms and provisions of this Agreement shall terminate and be of
no further force or effect.

            (b) Termination. In addition to the other termination rights set
forth in this Agreement, a Party will only have the right to terminate this
Agreement during the Term if (i) the non-terminating Party is declared or
acknowledges that it is insolvent or otherwise unable to pay its debts as they
become due or upon the filing of any proceeding (whether voluntary or
involuntary) for bankruptcy, insolvency or relief from creditors; (ii) a Change
of Control (defined below) of a Party has occurred; and/or (iii) the
non-terminating Party has committed (through any act or omission) a material
default or breach of any covenant, obligation, representation or warranty under
this Agreement, and such default or breach has not been cured within thirty (30)
days after receipt of written notice from the other Party specifying such
default or breach. Any determination to terminate this Agreement following the
expiration of such thirty (30) day notice shall be in writing and delivered to
the other Party. Upon any such termination, this Agreement shall be null and
void and of no further force or effect. "Change of Control" shall mean (a) the
consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of any Party; (b) the
acquisition by any Person or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under such Act) of more
than fifty percent (50%) of either: (i) the then outstanding shares of common
stock of any Party hereto; (ii) the combined voting power of the then
outstanding voting securities of any Party hereto entitled to vote generally in
the election of directors; or (iii) the income and profits interest of the
general partners or limited partners where the entity is a limited partnership;
or (c) in the case of Mobility, the consummation of a reorganization, merger or
consolidation or sale or other disposition of the Division. The right to
terminate the Agreement as a result of a Change of Control shall lie only with
the Party who did not have a Change of Control.

            (c) Liability Upon Termination. Neither Party shall be liable to the
other, because of such termination, for compensation (other than Commission
which may become payable as a result of orders accepted by Mobility prior to
termination and released for shipment within ninety (90) days after such
termination), reimbursement, or damages on account of the loss of prospective
profits on anticipated sales, or on account of expenditures, investments,

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leases, or any type of commitments made in connection with the business of
either caused by the termination of this Agreement.

            (d) Return of Materials. Upon termination, Sales Rep shall
immediately return all proprietary and confidential material, including but not
limited to price books, customer catalogues, installation drawings, sales
manuals, designer guides and owner's manuals.

            (e) Mitigation of Damages. Upon the occurrence of an event creating
grounds for termination under this Section 8, the Parties shall use commercially
reasonable efforts to mitigate damages caused by the occurrence of such event.

      9. CONFIDENTIALITY AND NON-DISPARAGEMENT. Each Party agrees to identify in
writing as confidential or proprietary, or mark as confidential or proprietary,
any information that either Party deems to be confidential information. Each
Party agrees that information that is disclosed orally shall not be considered
confidential information unless it is reduced to writing or to a written summary
that identifies the orally-disclosed topics to be considered as confidential
information and such writing is provided to the recipient at the time of
disclosure or within thirty (30) days thereafter. Each Party agrees to treat
such confidential information as strictly confidential and shall take reasonable
precautions to safeguard such information, shall not use it for any unauthorized
purposes, and shall not disclose it to any third party without the prior written
consent of the Party from whom it was obtained; provided, however, that the
Party receiving the confidential information may disclose such information to
its responsible officers, employees, agents and representatives who require such
information for the purposes contemplated by this Agreement, provided that such
persons shall be subject to the obligations of confidentiality provided in this
Section 9. Notwithstanding this Section 9, confidential information shall not
include information that: (i) the recipient can demonstrate by written evidence
was lawfully in its possession prior to its first receipt of such information
from the deliverer thereof; (ii) is independently developed by the recipient
without use of any confidential information of the other Party; (iii) is or
becomes available in the public domain at the time of disclosure or thereafter
other than as a result of disclosure by the recipient; or (iv) is received from
a third party with a legal or contractual right to disclose such information.
Each Party agrees to conduct its business in such a way as not to damage the
other's valuable reputation, or disparage such Party, its employees, directors,
parent, subsidiaries, or affiliates.

      10. LIMITATION OF LIABILITY.

            (a) TO THE EXTENT ALLOWED BY APPLICABLE LAW, IN NO EVENT SHALL
EITHER PARTY BE LIABLE FOR ANY LOSS OF PROFITS, LOSS OF USE OR DATA,
INTERRUPTION OF BUSINESS, OR FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES OF ANY KIND, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY.

            (b) IN NO EVENT SHALL MOBILITY OR ITS SUPPLIERS BE LIABLE TO SALES
REP FOR ANY UNAUTHORIZED REPRESENTATION OR WARRANTY MADE TO ANY THIRD PARTY BY
SALES REP.

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      11. INDEMNIFICATION.

            (a) Indemnity. Subject to the limitations set forth in Section
10(a), each Party (the "Indemnifying Party") agrees to indemnify, defend and
hold harmless the other Party and its officers, directors, employees, agents and
subsidiaries, and each of its representatives, and its successors and permitted
assigns (an "Indemnified Party") at all times from and after the Effective Date
from and against Damages that the Indemnified Parties may at any time suffer or
incur or become subject to as a direct or indirect result of: (i) any breach of
any representation or warranty made by the Indemnifying Party in this Agreement;
(ii) any breach or default in the performance by the Indemnifying Party of any
of the covenants to be performed by the Indemnifying Party under this Agreement;
(iii) any gross negligence, willful misconduct or dishonesty of the Indemnifying
Party or its employees, agents, representatives, contractors or any other person
under its control; (iv) any infringement of intellectual property rights of any
third person resulting from any Party's use of any such intellectual property
rights that is provided by the Indemnifying Party; or (v) any acts or omissions
of the Indemnifying Party in violation of federal, state or local laws.

            (b) Damages. For the purposes of this Agreement, the term "Damages"
shall include all losses, costs, expenses, damages and liabilities incurred by,
and all claims made and amounts finally awarded or charged against any
Indemnified Party, including all payments and settlements in discharge thereof,
and reasonable professional and attorneys' fees and expenses incurred in
investigating or in attempting to avoid the same or oppose the imposition
thereof (provided, however, that for claims between the Parties, Damages shall
include attorneys' fees only under circumstances of the gross negligence or
willful behavior of the Indemnifying Party), together with lawful interest
thereon. The term "Damages" shall not include any amounts for which any
Indemnified Party actually receives payment under an insurance policy, excluding
self-insured amounts and deductible amounts which are deemed "Damages"
hereunder.

      12. GENERAL.

            (a) Notices. All notices hereunder given by a Party shall be in
writing and shall be hand delivered or sent by U.S. Registered or Certified
Mail, postage prepaid, return-receipt requested, or delivered by a courier
company, prepaid, to the addresses indicated below. The addresses of the Parties
until further written notice to the contrary are:

                  Mobility:            Mobility Electronics, Inc.
                                       17800 Perimeter Drive, Suite 200
                                       Scottsdale, Arizona  85255
                                       Attn:  Charles R. Mollo, CEO

                  Sales Rep:           RadioShack Corporation
                                       300 RadioShack Circle,
                                       Fort Worth, Texas  76102
                                       Attn: Vice President - Law

            (b) Headings. The headings and captions used in connection with the
Sections and paragraphs of this Agreement are inserted only for the purpose of
reference. Such

                                       10
<PAGE>

captions shall not be deemed to govern, limit, modify, or in any other manner
affect the scope, meaning or intent of the provisions of this Agreement or any
part thereof; nor shall such captions otherwise be given any legal effect.

            (c) Choice of Law. This Agreement shall be governed by, construed
under, and enforced in accordance with the laws of the State of New York and
applicable federal law, without reference to any conflicts of laws principles
that may require reference to the laws of other jurisdictions.

            (d) Severability. If any provision of this Agreement should be
determined by a court of competent jurisdiction to be void or in any measure
unenforceable, the Parties intend that such determination shall amend or modify
this Agreement by eliminating or modifying only those provisions affected by the
determination.

            (e) Amendments. This Agreement may be amended or modified only by a
written agreement signed by both Parties.

            (f) Entire Agreement. This Agreement contains the complete statement
of all the agreements between the Parties with respect to its subject matter,
and cannot be changed or terminated orally, and will be binding upon and shall
inure to the benefit of such Party's successors and permitted assigns.

            (g) Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, and all of which together shall
constitute one and the same document.

            (h) Assignment. Except where expressly provided in this Agreement to
the contrary, a Party shall not assign or in any other way transfer this
Agreement or any right or obligation hereunder, whether by operation of law or
otherwise, without the prior written consent of the other Party, which consent
shall not be unreasonably withheld or delayed . This Section 12(h) shall not in
any manner affect a Party's right to terminate this Agreement upon the
occurrence of a Change of Control if permitted to do so under Section 8(b)
above.

                                       11
<PAGE>

      IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed as of the date first above written.

                                    MOBILITY ELECTRONICS, INC.

                                    By:  /s/ Charles R. Mollo
                                         --------------------
                                            Charles R. Mollo,
                                            Chief Executive Officer

                                    RADIOSHACK CORPORATION

                                    By:  /s/ Edmond Chan
                                         ---------------
                                            Edmond Chan,
                                            Senior Vice President and
                                            Chief Strategy Officer

                                       12
<PAGE>

                                    EXHIBIT A

                                 ITIP TECHNOLOGY

ISSUED POWER PATENTS

<TABLE>
<CAPTION>
ISSUED PATENT #      TITLE
<S>                  <C>
5,347,211            Selectable Output Power Converter
6,643,158            Dual input AC/DC to Programmable DC
                     Output Converter
6,700,808            Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     Utilizing A Secondary Buck Converter
6,650,560            Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     Utilizing Single-Loop Optical Feedback
6,751,109            Dual Input AC/DC Battery Operated
                     Power Supply

6,064,177            Two-Part Battery Charger/Power Cable
                     Article with Multiple Device Capability
6,433,274            Power Converter Device
6,775,163            Dual Input AC/DC to Programmable DC
                     Output Converter
6,791,853            Dual Input AC/DC Power Converter
                     Having a Programmable Peripheral Power
                     Hub Module
D2004/1351/A         Singapore - 5 Watt Connector Solid
                     Lines
D2004/1352/H         Singapore - 5 Watt Receptacle Solid
                     Lines
D2004/1353/D         Singapore - 15 Watt Connector Solid
                     Lines
D2004/1354/J         Singapore - 15 Watt Receptacle Solid
                     Lines
D2004/1355/G         Singapore - 25 Watt Connector Solid
                     Lines
D2004/1356/C         Singapore - 25 Watt Receptacle Solid
                     Lines
</TABLE>

                                      A-1
<PAGE>

<TABLE>
<S>                  <C>
D2004/1357/Z         Singapore - 35 Watt Connector Solid
                     Lines
D2004/1358/F         Singapore - 35 Watt Receptacle Solid
                     Lines
157405               Australia - 15 Watt Connector Solid
                     Lines
157401               Australia - 15 Watt Receptacle Solid
                     Lines
157404               Australia - 15 Watt Connector Solid
                     Lines
157507               Australia - 15 Watt Receptacle Solid
                     Lines
157403               Australia - 15 Watt Plug only
157400               Australia - 25 Watt Receptacle Solid
                     Lines
157406               Australia - 25 Watt Connector Solid
                     Lines
157503               Australia - 25 Watt Receptacle Solid
                     Lines
157506               Australia - 25 Watt Plug only
157402               Australia - 35 Watt Receptacle Solid
                     Lines
157399               Australia - 35 Watt Connector Solid
                     Lines
157505               Australia - 35 Watt Receptacle Solid
                     Lines
157502               Australia - 35 Watt Connector Solid
                     Lines
157508               Australia - 35 Watt Plug only
</TABLE>

PENDING POWER PATENT APPLICATIONS

<TABLE>
<CAPTION>
SERIAL #             TITLE
<S>                  <C>
10/790,654           Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     Utilizing A Secondary Buck Converter
10/715,259           Dual Input AC and DC Power Supply
                     Having A Programmable DC Output
                     Utilizing Single-Loop Optical Feedback
</TABLE>

                                      A-2
<PAGE>

<TABLE>
<S>                  <C>
US02/03542 PCT       Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     Utilizing A Secondary Buck Converter
US02/34766 PCT       Dual Input AC/DC Battery Operated
                     Power Supply
US02/34749 PCT       Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     Utilizing Single-Loop Optical Feedback
US02/34748 PCT       Dual Input AC/DC to Programmable DC
                     Output Converter
10/623,060           Programmable Power Converter
60/494,860           Dual Input AC/DC Fuel Cell Operated
                     Power Supply
10/663,868           Compact Electronics Plenum
60/525,857           Retractable Cable System For Power
                     Converter
02707726.2           Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     (Europe)
02815764.8           Dual Input AC and DC Power Supply
                     Having a Programmable DC Output (China)
10-2004-7002345      Dual Input AC and DC Power Supply
                     Having a Programmable DC Output (South
                     Korea)
2003-541,122         Dual Input AC and DC Power Supply
                     Having a Programmable DC Output (Japan)
2004104345           Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     (Russia)
2002242115           Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     (Australia)
160167               Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     Utilizing a Secondary Buck Converter
                     (Israel)
2004/0930            Dual Input AC and DC Power Supply
                     Having a Programmable DC Output (South
                     Africa)
</TABLE>

                                      A-3
<PAGE>

<TABLE>
<S>                  <C>
00315/DELNP/2004     Dual Input AC and DC Power Supply
                     Having a Programmable DC Output (India)
2004 0455            Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     (Norway)
200400703-5          Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     (Singapore)
2,454,044            Dual Input AC and DC Power Supply
                     Having a Programmable DC Output
                     (Canada)
10/790,877           Key Universal Power Tip and Power
                     Source Connectors
US2004/007084 PCT    Dual Input AC/DC Power Converter
                     Having A Programmable Peripheral Power
                     Hub Module
US04/16292 PCT       Key Universal Power Tip and Power
                     Source Connectors
10-2004-7006621      Dual Input AC/DC Battery Operated
                     Power Supply (South Korea)
2003-541,121         Dual Input AC/DC Battery Operated
                     Power Supply (Japan)
2002342210           Dual Input AC/DC Battery Operated
                     Power Supply (Australia)
US02/34766           Dual Input AC/DC Battery Operated
                     Power Supply ( China)
02776371.3           Dual Input AC/DC Battery Operated
                     Power Supply (Europe)
2,466,162            Dual Input AC/DC Battery Operated
                     Power Supply (Canada)
01172/DELNP/200      Dual Input AC/DC Battery Operated
                     Power Supply (India)
US04/19301 PCT       Programmable Power Converter
US04/16292           Key Universal Power Tip and Power
                     Source Connectors (China)
</TABLE>

                                      A-4
<PAGE>

<TABLE>
<S>                  <C>
10-2004-7013263      Key Universal Power Tip and Power
                     Source Connectors (South Korea)
US04/16292           Key Universal Power Tip and Power
                     Source Connectors (Japan)
US04/16292           Key Universal Power Tip and Power
                     Source Connectors (Russia)
2004208705           Key Universal Power Tip and Power
                     Source Connectors (Australia)
US04/16292           Key Universal Power Tip and Power
                     Source Connectors (Israel)
2004/6728            Key Universal Power Tip and Power
                     Source Connectors (South Africa)
US04/16292           Key Universal Power Tip and Power
                     Source Connectors (India)
US04/16292           Key Universal Power Tip and Power
                     Source Connectors (Norway)
US04/16292           Key Universal Power Tip and Power
                     Source Connectors (Singapore)
2,475,060            Key Universal Power Tip and Power
                     Source Connectors (Canada)
29/198,752           CONNECTOR ( 5 Watt Connector TIP)
29/198,801           CONNECTOR (15 Watt Connector TIP)
29/198,777           CONNECTOR (25 Watt Connector TIP)
29/198,775           CONNECTOR (35 Watt Connector TIP)
29/198,754           CONNECTOR ( 5 Watt Receptacle)
29/198,776           CONNECTOR (15 Watt Receptacle)
29/198,755           CONNECTOR (25 Watt Receptacle)
29/198,756           CONNECTOR (35 Watt Receptacle)
29/206,090           CONNECTOR (5 Watt Connector-Revised)
</TABLE>

                                      A-5
<PAGE>

<TABLE>
<S>                  <C>
29/206,089           CONNECTOR (5 Watt Receptacle-Revised)
                                                                          CANADA
08-901134CA          5 Watt Connector Dashed/Solid Lines
08-901135CA          5 Watt Receptacle Dashed/Solid Lines
08-901136CA          15 Watt Connector Dashed/Solid Lines
08-901137CA          15 Watt Receptacle Dashed/Solid Lines
08-901138CA          25 Watt Connector Dashed/Solid Lines
08-901139CA          25 Watt Receptacle Dashed/Solid Lines
08-901140CA          35 Watt Connector Dashed/Solid Lines
08-901141CA          35 Watt Receptacle Dashed/Solid Lines
                                                                           CHINA
DIM040859            5 Watt Connector/Receptacle Solid Lines
DIM040860            15 Watt Connector/Receptacle Solid
                     Lines
DIM040869            25 Watt Connector/Receptacle Solid
                     Lines
DIM040870            35 Watt Connector/Receptacle Solid
                     Lines
                                                                          EUROPE
000213889            5 Watt Connector/Receptacle (Revised)
000188958            15,25,35 Watt Connector/Receptacle
                                                                           INDIA
TBD                  5 Watt Connector Solid Lines
TBD                  5 Watt Receptacle Solid Lines
TBD                  15 Watt Connector Solid Lines
TBD                  15 Watt Receptacle Solid Lines
TBD                  25 Watt Connector Solid Lines
</TABLE>

                                      A-6
<PAGE>

<TABLE>
<S>                  <C>
TBD                  25 Watt Receptacle Solid Lines
TBD                  35 Watt Connector Solid Lines
TBD                  35 Watt Receptacle Solid Lines
                                                                          ISRAEL
39540                5-35 Watt Connector/Receptacle
                     Dashed/Solid
                                                                           JAPAN
2004-023,370         5 Watt Connector Dashed/Solid Lines
2004-023,371         5 Watt Receptacle Dashed/Solid Lines
2004-023,377         15 Watt Connector Dashed/Solid Lines
2004-023,378         15 Watt Receptacle Dashed/Solid Lines
2004-023,379         25 Watt Connector Dashed/Solid Lines
2004-023,381         25 Watt Receptacle Dashed/Solid Lines
2004-023,383         35 Watt Connector Dashed/Solid Lines
2004-023,384         35 Watt Receptacle Dashed/Solid Lines
                                                                          NORWAY
TBD                  5-35 Watt Connector/Receptacle
                                                                          RUSSIA
2004502018           5-35 Watt Connectors - Solid Lines
2004502019           5-35 Watt Receptacle - Solid Lines
                                                                    SOUTH AFRICA
2004/1001            5 Watt Connector Dashed/Solid Lines
2004/1000            5 Watt Receptacle Dashed/Solid Lines
2004/1003            15 Watt Connector Dashed/Solid Lines
2004/1002            15 Watt Receptacle Dashed/Solid Lines
</TABLE>

                                      A-7
<PAGE>

<TABLE>
<S>                  <C>
2004/1005            25 Watt Connector Dashed/Solid Lines
2004/1004            25 Watt Receptacle Dashed/Solid Lines
2004/1007            35 Watt Connector Dashed/Solid Lines
2004/1006            35 Watt Receptacle Dashed/Solid Lines
                                                                     SOUTH KOREA
30-2004-0023709      5 Watt Connector Dashed Lines
30-2004-0023710      5 Watt Receptacle Dashed Lines
30-2004-0023711      15 Watt Connector Dashed Lines
30-2004-0023712      15 Watt Receptacle Dashed Lines
30-2004-0023713      25 Watt Connector Dashed Lines
30-2004-0023714      25 Watt Receptacle Dashed Lines
30-2004-0023715      35 Watt Connector Dashed Lines
30-2004-0023716      35 Watt Receptacle Dashed Lines
                                                                          TAIWAN
93304600             5 Watt Connector Dashed/Solid Lines
93304601             5 Watt Receptacle Dashed/Solid Lines
93304602             15 Watt Connector Dashed/Solid Lines
93304603             15 Watt Receptacle Dashed/Solid Lines
93304604             25 Watt Connector Dashed/Solid Lines
93304605             25 Watt Receptacle Dashed/Solid Lines
93304606             35 Watt Connector Dashed/Solid Lines
93304607             35 Watt Receptacle Dashed/Solid Lines
</TABLE>

                                      A-8
<PAGE>

                                    EXHIBIT B

                                  ITIP PRODUCTS

1.    Low-Power (70 watts or less) combination AC/DC power adapters for cell
      phones, digital cameras, MP3 players, game boys, DVD players, and other
      electronic devices (the "Squirt" and "Squirt Derivative"), but not for use
      with Portable Computers.

2.    Low-Power (70 watts or less) cigarette lighter adapters (CLA) for cell
      phones, digital cameras, MP3 players, game boys, DVD players, and other
      electronic devices, but not for use with Portable Computers.

3.    Low-Power (70 watts or less) mobile AC power adapters for cell phones,
      digital cameras, MP3 players, game boys, DVD players, and other electronic
      devices, but not for use with Portable Computers.

4.    Dual Power.

5.    iTips (i.e., tips) for the above power products or any other iTip
      Products.

                                COMPUTER PRODUCTS

1.    65 watt, 70 watt, 90 watt, 120 watt, 130 watt, and other power versions of
      Mobility's combinations AC/DC universal power adapters (i.e., Juice or
      Everywhere Power) for Portable Computers with simultaneous charging of a
      secondary device.

2.    65 watt, 70 watt, 90 watt, 120 watt, 130 watt, and other power versions of
      Mobility's AC universal power adapters (ICE or wall power) for Portable
      Computers with simultaneous charging of a secondary device.

3.    65 watt, 70 watt, 90 watt, 120 watt, 130 watt, and other power versions of
      Mobility's DC universal power adapters (power extender or auto power) for
      Portable Computers with simultaneous charging of a secondary device.

4.    Any tip or iTip for any of the above products.

                                      B-1
<PAGE>
                                    EXHIBIT C

                    EXCLUDED CUSTOMERS FOR COMPUTER PRODUCTS

                                       [*]

--------------------------------------------------------------------------------
* Confidential information on this page has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a Confidential Treatment
Request.

                                       C-1
<PAGE>
                                    EXHIBIT D

                        EXISTING MOBILITY SALES POLICIES

The following summarizes the standard policies adhered to by the Mobility
Electronics, Inc. ("Mobility") sales force and sales agents acting on behalf of
Mobility sales management.

These policies are continually under review and subject to amendment as deemed
necessary for the effective management of new and existing sales opportunities.
Approval for deviation from the following policies is available only from
Mobility sales management and must be in written documented form.

                                 SALES POLICIES

PAYMENT TERMS

         NET 30 DAYS. EXCEPTIONS WILL BE CONSIDERED BY MOBILITY'S CONTROLLER
         AND/OR CREDIT MANAGER ON A CASE BY CASE BASIS.

CREDIT LIMITS

         POTENTIAL NEW CUSTOMERS MUST SUBMIT A CREDIT APPLICATION. DETERMINATION
         OF CREDIT LIMIT WILL BE MADE BY MOBILITY'S CREDIT MANAGER.

MARKETING DEVELOPMENT FUNDS

         PROPOSALS FOR ECONOMICALLY JUSTIFIED MARKET DEVELOPMENT FUNDS WILL BE
         CONSIDERED ON A CASE BY CASE BASIS. ALL SUCH PROGRAMS REQUIRE PRIOR
         APPROVAL FROM MOBILITY MANAGEMENT.

POWER PRODUCT BRANDING

         POWER PRODUCTS MUST CONTAIN "ITIP" COMPATIBLE BRANDING, IN ACCORDANCE
         WITH MOBILITY'S BRANDING GUIDELINES. LICENSE TO UTILIZE "IGO" BRANDING
         AVAILABLE UPON TERMS AGREEABLE TO MOBILITY MANAGEMENT. ALL PACKAGING
         AND BRANDING MUST COMPLY WITH MOBILITY TRADEMARK USAGE GUIDELINES AND
         REQUIRES MOBILITY PRIOR WRITTEN REVIEW AND APPROVAL.

PRICING QUOTATIONS

         SEE MOBILITY PRICING MATRIX FOR CUSTOMER DEFINITIONS AND PRICING TIERS.
         ALL PRICE QUOTES MUST COMPLY WITH THIS PRICE STRUCTURE, UNLESS PRIOR
         WRITTEN APPROVAL IS OBTAINED FROM MOBILITY. THE PRICING MATRIX IS
         CONFIDENTIAL AND CANNOT BE DISCLOSED TO ANY THIRD PARTY; PROVIDED,
         HOWEVER, IF NECESSARY TO MAKE A SALE, THE SPECIFIC PRICING TIER
         INFORMATION CAN BE SHARED WITH A CUSTOMER (BUT ONLY THE PRICING WITH
         RESPECT TO THE APPLICABLE CUSTOMER TIER).

                                       D-1
<PAGE>
ORDER SUBMISSION AND ACCEPTANCE

         VERBAL ORDERS ARE NOT ACCEPTABLE. FACSIMILE, MAIL OR ELECTRONIC
         SUBMISSION REQUIRED FOR ALL ORDERS.

         ALL ORDERS REQUIRE MOBILITY'S PRIOR WRITTEN ACCEPTANCE.

         MOBILITY ELECTRONICS
         17800 NORTH PERIMETER DRIVE, SUITE 200
         SCOTTSDALE, AZ 85255
         FAX 480-281-7742
         EMAIL - BSTECH@MOBL.COM, ANEWBY@MOBL.COM OR MEAGLESPIRIT@MOBL.COM

LEAD-TIME FOR ORDER SHIPMENT

         CUSTOMER MUST PROVIDE MOBILITY WITH A 16-WEEK ROLLING FORECAST FOR
         PLANNING PURPOSES ONLY.

         ORDER LEAD-TIME FOR "DERIVATIVE" PRODUCTS (DIFFERENT CABLES, TIPS,
         PACKAGING, ETC) IS 16-WEEKS.

         ORDER LEAD-TIME FOR REPLENISHMENT OF EXISTING PRODUCTS (NO CHANGES) IS
         12 WEEKS.

ORDER CANCELLATION AND RE-SCHEDULING

         FACSIMILE, MAIL OR ELECTRONIC SUBMISSION REQUIRED FOR ALL ORDER
         CANCELLATIONS AND RE-SCHEDULED DELIVERY DATES.

         MOBILITY ELECTRONICS
         17800 NORTH PERIMETER DRIVE, SUITE 200
         SCOTTSDALE, AZ 85255
         FAX 480-281-7742
         EMAIL - BSTECH@MOBL.COM, ANEWBY@MOBL.COM OR MEAGLESPIRIT@MOBL.COM

         OPEN PURCHASE ORDERS MAY BE MODIFIED UPON WRITTEN NOTICE PER THE
FOLLOWING SCHEDULE:

<TABLE>
<CAPTION>
                 BEFORE                 INCREASE       DECREASE      CANCEL       RESCHEDULE
                 ------                 --------       --------      ------       ----------
                 SHIPMENT
                 --------
<S>                                     <C>            <C>           <C>          <C>
                 31-60 DAYS             15%            15%           0%           50% (UP TO 60 DAYS)

                 61-90 DAYS             50%            50%           25%          100% (UP TO 60 DAYS)

                 90+ DAYS               100%           100%          100%
</TABLE>

         CANCELLED ORDERS WILL NOT RELEASE CUSTOMER FROM LONG LEAD-TIME
         COMPONENTS (DEFINED AS BEYOND 60 DAYS LEAD-TIME FOR ANY GIVEN
         COMPONENT).

SHIPPING TERMS

                                       D-2
<PAGE>
         FOB POINT OF MANUFACTURE, UNLESS OTHERWISE APPROVED BY MOBILITY IN
         WRITING.

RETURNS

         DEFECTIVE MATERIALS ARE RETURNABLE FOR CREDIT UPON VERIFICATION OF
         FAILURE BY MOBILITY ELECTRONICS OR AUTHORIZED 3RD PARTY TESTING PARTY.
         CREDIT PROVIDED UPON FAILURE VERIFICATION. NON-DEFECTIVE MATERIALS WILL
         BE RETURNED TO CUSTOMER AND CUSTOMER WILL BE CHARGED FOR REPACKING,
         HANDLING, SORTING AND TESTING OF THE NON-DEFECTIVE MATERIALS.

WARRANTY

         SEE SPECIFIC PRODUCT FOR APPLICABLE WARRANTY.

RETURN MATERIAL AUTHORIZATION (RMA)

         FACSIMILE, MAIL OR ELECTRONIC SUBMISSION REQUIRED FOR ALL RMA REQUESTS.

         MOBILITY ELECTRONICS
         17800 NORTH PERIMETER DRIVE, SUITE 200
         SCOTTSDALE, AZ 85255
         FAX 480-281-7742
         EMAIL - BSTECH@MOBL.COM, ANEWBY@MOBL.COM OR MEAGLESPIRIT@MOBL.COM

         UPON RECEIPT AND ACCEPTANCE, MOBILITY ELECTRONICS WILL PROVIDE CUSTOMER
         WITH RMA NUMBER AND SHIPPING INSTRUCTIONS.

                                      D-3
<PAGE>
                                    EXHIBIT E

                                 TRANSITION PLAN

         During the "Transition Period," as defined below, RadioShack shall
purchase the following products (the "Listed Products") from Mobility at the
following prices:

<TABLE>
<CAPTION>
PRODUCT                     TRANSITION PRICE               COMMENT
-------                     ----------------               -------
<S>                         <C>                            <C>
[*]                         [*]                            [*]
[*]                         [*]                            [*]
[*]                         [*]                            [*]
[*]                         [*]                            [*]
[*]                         [*]                            [*]
[*]                         [*]                            [*]
[*]                         [*]                            [*]
</TABLE>

         "Transition Period" shall mean the period between March 31, 2005 and
the earlier of (a) December 31, 2005 and (b) the date on which RadioShack's
iTips Product Commission equals or exceeds, on a pro forma basis, the following:
(i) the number of units of above Listed Products sold by RadioShack for a
calendar quarter, multiplied by (ii) the cost of the above Listed Products to
RadioShack per Mobility's most favorable pricing for retail customers purchasing
similar volumes minus the cost of the above Listed Products at the costs listed
above.

         [*].

         No iTips Product Commission will be paid by Mobility to RadioShack or
Motorola, Inc. on sales of the above Listed Products to RadioShack until the
Transition Period expires.

--------------------------------------------------------------------------------
* Confidential information on this page has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a Confidential Treatment
Request.

                                      E-1<PAGE>

                                                                   Exhibit 10.44

                              EMPLOYMENT AGREEMENT

      This Agreement, dated as of March 31, 2005, is by and between Debra Drue
Wax ("Executive") and SeaBright Insurance Company, an Illinois domiciled
insurance company ("Employer"), a wholly owned subsidiary of SeaBright Insurance
Holdings, Inc., a Delaware corporation ("Holdings").

1.    PERIOD OF EMPLOYMENT. Employer shall employ Executive to render services
to Employer in the position and with the duties and responsibilities described
in Section 2 for the period (the "Period of Employment") commencing on the date
of this Agreement and ending on the date upon which the Period of Employment is
terminated in accordance with Section 4.

2.    POSITION AND RESPONSIBILITIES.

      (a)   Position. Executive accepts employment with Employer as General
Counsel, Sr. Vice President and Corporate Secretary and shall perform all
services appropriate to that position, as well as such other services as may be
assigned by Employer. Executive shall devote her best efforts and full-time
attention to the performance of her duties. Executive shall be subject to the
direction of Employer, which shall retain full control of the means and methods
by which she performs the above services and of the place(s) at which all
services are rendered. Executive shall be expected to travel if necessary or
advisable in order to meet the obligations of her position.

      (b)   Other Activity. Except upon the prior written consent of Employer,
Executive (during the Period of Employment) shall not (i) accept any other
employment; or (ii) engage, directly or indirectly, in any other business,
commercial, or professional activity (whether or not pursued for pecuniary
advantage) that is competitive with Employer, creates a conflict of interest
with Employer, or otherwise interferes with the business of Employer or any
Affiliate (and shall immediately cease any such ongoing activity that becomes so
competitive, begins to create such a conflict or begins to interfere with the
business of Employer or any Affiliate). An "Affiliate" shall mean any person or
entity that directly or indirectly controls, is controlled by, or is under
common control with Employer.

3.    COMPENSATION AND BENEFITS.

      (a)   Salary. In consideration of the services to be rendered under this
Agreement, Employer shall pay Executive $200,000 per year ("Base Salary"),
payable in regular installments in accordance with Employer's general payroll
policies for salaried employees, in effect from time to time. All compensation
and comparable payments to be paid to Executive under this Agreement shall be
less all applicable withholdings required by law. Executive's Base Salary will
be reviewed for market and performance adjustments within thirty (30) days of
the beginning of each calendar year during the Period of Employment by
Employer's Board of Directors (the "Board") and may be adjusted after such
review in the Board's sole discretion.

      (b)   Bonus. Executive will be eligible to receive an annual bonus in a
target amount equal to 40% of her Base Salary for each calendar year during the
Period of Employment based upon achievement by Executive and achievement by
Employer of performance criteria and other goals established by the Board (after
consultation with Employer) on an annual basis prior to the commencement of each
calendar year or as soon as reasonably practicable thereafter, except that the
performance criteria and other goals for the calendar year ending December 2005
shall be established within 45 days following the date hereof. The bonus payable
in respect of any given year during the Period of Employment shall be paid
within thirty (30) days following the delivery of Employer's annual audited
statutory financial statements for such year. Executive must be employed by
Employer on the last day of the calendar year for which any bonus relates in
order to receive any such bonus hereunder. The target amount of Executive's
bonus as set forth above will be reviewed for market and performance adjustments
within thirty (30) days of the beginning of each calendar year during the Period
of Employment by the Board and may be adjusted after such review in the Board's
sole discretion.

      (c)   Benefits. Executive shall be entitled to vacation leave in
accordance with Employer's standard policies for salaried employees, in effect
from time to time. As Executive becomes eligible, she shall have the right to
participate in and to receive benefits from all present and future benefit plans
specified in Employer's policies and generally made available to salaried
employees of Employer from time to time. The amount and extent of benefits

                                       1
<PAGE>

to which Executive is entitled shall be governed by the specific benefit plan,
as amended. Executive also shall be entitled to any benefits or compensation
tied to termination as described in Section 4. Employer reserves the ability, in
its sole discretion, to adjust benefits provided to Executive in connection with
the adjustment of benefits to salaried employees. No statement concerning
benefits or compensation to which Executive is entitled shall alter in any way
the term of this Agreement, any renewal thereof, or its termination.

      (d)   Expenses. Employer shall reimburse Executive for reasonable travel
and other business expenses incurred by Executive in the performance of her
duties, subject to reasonable documentation thereof and in accordance with
Employer's policies in effect from time to time.

      (e)   Stock Options. Employer shall grant Executive an option to acquire
7,650 shares of Common Stock on the terms and conditions set forth in a Stock
Option Grant Agreement , and pursuant to the Company's 2005 Long-Term Equity
Incentive Plan (the "Plan") which are attached to and incorporated into this
agreement in Exhibit B. In connection with such grant, Executive shall execute
and deliver to Holdings a counterpart to the Stock Option Grant Agreement, in
form and substance as set forth in Exhibit B attached hereto, to be entered into
by and among Holdings and all of its stock optionees.

      (f)   Withholding. Any and all payments made pursuant to this Agreement
shall be subject to all withholding required in accordance with applicable
federal, state or local law.

4.    TERMINATION OF EMPLOYMENT.

      (a)   By Employer Without Cause. At any time, Employer may terminate
Executive without Cause (as defined below), effective as of the date specified
in a written notice from Employer to Executive. Employer may discipline or
demote Executive with or without Cause and with or without prior notice.
Employer may discipline, demote, or dismiss Executive as provided in this
Section 4 notwithstanding anything to the contrary contained in or arising from
any statements, policies, or practices of Employer relating to the employment,
discipline, or termination of its employees. If Executive's employment with
Employer is terminated by Employer without Cause, Executive shall be entitled to
continue to receive her Base Salary payable in regular installments as special
severance payments from the date of termination for a period of twelve (12)
months thereafter, or until Executive obtains other employment (but with it
being understood that Executive shall be under no duty to seek alternative
employment during the Severance Period), whichever first occurs (the "Severance
Period"), if and only if Executive has executed and delivered to Employer the
General Release substantially in form and substance as set forth in Exhibit A
attached hereto and only so long as Executive has not revoked or breached the
provisions of the General Release or breached the provisions of this Agreement
or any Ancillary Agreement (as defined below) and does not apply for
unemployment compensation chargeable to Employer during the Severance Period,
and Executive shall not be entitled to any other salary, compensation or
benefits after termination of the Period of Employment, except as specifically
provided for in Employer's employee benefit plans or as otherwise expressly
required by applicable law (such as COBRA). Notwithstanding anything to the
contrary contained in this Section 4(a), in the event Executive breaches the
provisions of this Agreement or any Ancillary Agreement, the severance amounts
payable by Employer under this Section 4(a) shall not terminate unless and until
more than ten (10) days have elapsed from and after the date written notice of
such breach has been delivered to Executive without such breach having been
cured during such 10-day period.

      (b)   By Employer For Cause. At any time, and without prior notice (except
as otherwise provided in the definition of Cause set forth below), Employer may
terminate Executive for Cause. Employer shall pay Executive all compensation
then due and owing; thereafter, all of Employer's obligations under this
Agreement shall cease. Termination shall be for "Cause" if Executive: (i) is
continuously inattentive to her lawful duties after at least one written notice
has been provided to Executive and Executive has failed to cure the same within
a 30-day period thereafter; (ii) reports to work under the influence of alcohol
or illegal drugs, or uses illegal drugs (whether or not at the workplace) or
engages in other conduct causing the Employer substantial public disgrace or
disrepute or economic harm; (iii) breaches her duty of loyalty to Employer or
engages in any acts of dishonesty or fraud with respect to Employer or any of
its business relations; (iv) is convicted of a felony or any crime involving
dishonesty, breach of trust, or physical or emotional harm to any person (or
enters a plea of guilty or nolo contendere with respect thereto); (v) breaches
any material term of this Agreement or any other agreement between Executive and
Employer or any of its Affiliates and such breach (if capable of cure) is not
cured within thirty (30) days following

                                       2
<PAGE>

written notice thereof from Employer or (vi) is terminated for substandard
performance. For purposes of this Agreement, "substandard performance" shall be
determined by a majority of the Board as provided herein. The Board shall give
Executive written notice of the Board's concern over Executive's performance,
and Executive shall have thirty (30) days to prepare for a meeting with the
Board, at which time Executive may present any information on market competitive
conditions and any other factors bearing on her and Employer's performance.
After consideration of these and such other factors as the Board may deem
relevant, if a majority of the Board determines in good faith that Employer's
future performance would be best served by a change in management, the Board may
terminate Executive's employment for "substandard performance" following the
expiration of such 30-day period.

      (c)   Voluntary Termination By Executive. At any time, Executive may
terminate her employment for any reason, with or without cause, by providing
Employer at least thirty (30) days' advance written notice. Employer shall have
the option, in its complete discretion, to make Executive's termination
effective at any time prior to the end of such notice period. On the date of
such termination, Employer shall pay Executive all compensation then due and
owing through such date; and, thereafter, all of Employer's obligations under
this Agreement shall cease.

      (d)   Termination Upon Death or Permanent Disability. Executive's
employment with Employer shall also terminate upon Executive's death or
permanent mental or physical disability or other incapacity (as determined by
the Board in its good faith judgment). Upon any such termination, Employer shall
pay Executive (or Executive's estate or legal representative or guardian) all
compensation then due and owing; thereafter, all of Employer's obligations under
this Agreement shall cease.

      (e)   Termination of Compensation. Except as otherwise expressly provided
herein, all of Executive's rights to salary, bonuses, employee benefits and
other compensation hereunder which would have accrued or become payable after
the termination or expiration of the Period of Employment shall cease upon such
termination or expiration, other than those expressly required under applicable
law (such as COBRA).

      (f)   Termination Obligations.

                  (i)   Executive agrees that all property, including, without
      limitation, all equipment, tangible Proprietary Information (as defined
      below), documents, books, records, reports, notes, contracts, lists,
      computer disks (and other computer-generated files and data), and copies
      thereof, created on any medium and furnished to, obtained by, or prepared
      by Executive in the course of or incident to her employment, belongs to
      Employer and shall be returned promptly to Employer upon termination of
      the Period of Employment.

                  (ii)  All employee and other benefits to which Executive is
      otherwise entitled shall cease upon Executive's termination, unless
      explicitly continued either under this Agreement or under any specific
      written policy or benefit plan of Employer.

                  (iii) Upon termination of the Period of Employment, Executive
      shall be deemed to have resigned from all offices and directorships then
      held with Employer or any Affiliate.

                  (iv)  The representations and warranties contained in this
      Agreement and Executive's obligations under this Section 4(g) shall
      survive the termination of the Period of Employment and the expiration of
      this Agreement.

      (g)   For sixty (60) days following any termination of the Period of
Employment, Executive shall cooperate in a reasonable manner with Employer in
all matters relating to the winding up of pending work on behalf of Employer and
the orderly transfer of work to other employees of Employer. At all times
following any termination of the Period of Employment, Executive shall also
cooperate in the defense of any action brought by any third party against
Employer that relates in any way to Executive's acts or omissions while employed
by Employer; provided that Employer shall reimburse Executive for her reasonable
out-of-pocket expenses after being provided with reasonable documentation of
such expenses.

                                       3
<PAGE>

5.    NONCOMPETITION. Executive acknowledges and agrees with Employer that
Executive's services to Employer are unique in nature and that Employer would be
irreparably damaged if Executive were to provide similar services to any person
or entity competing with Employer or engaged in a similar business. Executive
accordingly covenants and agrees with Employer that during the period commencing
with the Effective Date and ending on the twelfth (12) month following the date
of the termination of Executive's employment with Employer (the "Noncompetition
Period"), Executive shall not, directly or indirectly, either for himself or for
any other individual, corporation, partnership, joint venture or other entity,
participate in any business (including, without limitation, any division, group
or franchise of a larger organization) anywhere in the world which engages or
which proposes to engage in the promotion, service, underwriting, issuance or
sale of insurance policies providing United States Longshoremen and Harbor
Workers coverage or other coverage under the Jones Act or related workers
compensation or similar insurance or reinsurance or any alternative dispute
resolution insurance or of any other business hereafter conducted by Employer or
its Affiliates prior to Executive's termination (collectively, the "USL&H
Business"). For purposes of this Agreement, the term "participate in" shall
include, without limitation, having any direct or indirect interest in any
corporation, partnership, joint venture or other entity, whether as a sole
proprietor, owner, stockholder, partner, joint venturer, creditor or otherwise,
or rendering any direct or indirect service or assistance to any individual,
corporation, partnership, joint venture and other business entity (whether as a
director, officer, manager, supervisor, employee, agent, consultant or
otherwise). Without limiting the generality of the foregoing, Executive agrees
that during the Noncompetition Period she will not, directly or indirectly,
either for himself or for any other individual, corporation, partnership, joint
venture or other entity, form or acquire any insurance company licensed to write
or service USL&H Business. If, at the time of enforcement of this Section 5, a
court shall hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the parties hereto agree that
the maximum period, scope or geographic area reasonable under such circumstances
shall be substituted for the stated period, scope or area and that the court
shall be allowed and directed to revise the restrictions contained herein to
cover the maximum period, scope and area permitted by law. In the event of an
alleged breach or violation by Executive of this Section 5, the Non-Competition
Period shall be tolled until such breach or violation has been duly cured.
Executive agrees that the restrictions contained in this Section 5 are
reasonable and that Executive has received adequate and valuable consideration
in exchange therefor.

6.    NONSOLICITATION. Executive acknowledges that she is familiar with the
trade secrets of Employer and its Affiliates and with other proprietary
information concerning Employer and its Affiliates, including, without
limitation, all (a) inventions, technology and research and development of
Employer and its Affiliates, (b) customers and suppliers and customer and
supplier lists of Employer and its Affiliates, (c) products and services of
Employer and its Affiliates (including, without limitation, those under
development) and related costs and pricing structures, (d) accounting and
business methods and practices of Employer and its Affiliates and (e) similar
and related proprietary information of Employer and its Affiliates. Executive
further acknowledges that her services have been and shall be of special, unique
and extraordinary value to Employer, that Executive has been substantially
responsible for the growth and development of Employer and the creation and
preservation of Employer's goodwill. During the period commencing with the
Effective Date and ending twelve (12) months after the date of termination of
Executive's employment with Employer (the "Restriction Period"), Executive shall
not (i) induce or attempt to induce any employee of Employer or any of its
Affiliates to leave the employ of Employer or such Affiliate, or in any way
interfere with the relationship between Employer or any of its Affiliates and
any employee thereof, (ii) hire directly or through another entity any person
who was an employee of Employer or any of its Affiliates at any time during the
Restriction Period, or (iii) call on, solicit or service any customer, supplier,
licensee, licensor or other business relation of Employer or any of its
Affiliates in order to induce or attempt to induce such person or entity to
cease doing business with Employer or any such Affiliate or in any way
materially interfere with the relationship between any such customer, supplier,
licensee, licensor or business relation and Employer or any of its Affiliates
(including, without limitation, making any negative statements or communications
concerning Employer or any of its Affiliates), or enter into any transaction,
contract or arrangement with any such customer, supplier, licensee, licensor or
business relation relating, directly or indirectly, to the USL&H Business.

7.    NONDISCLOSURE AND NONUSE OF PROPRIETARY INFORMATION.

      (a)   Executive shall not disclose or use at any time, either during her
employment with Employer or thereafter, any Proprietary Information (as defined
below) of which Executive is or becomes aware, whether or not such information
is developed by him, except to the extent that such disclosure or use is
directly related to and required by Executive's performance of duties assigned
to Executive by Employer. Executive shall take all

                                       4
<PAGE>

appropriate steps to safeguard Proprietary Information and to protect it against
disclosure, misuse, espionage, loss and theft. The foregoing shall not, however,
prohibit disclosure by Executive of Proprietary Information that has been
published in a form generally available to the public prior to the date
Executive proposes to disclose such information. Information shall not be deemed
to have been published merely because individual portions of the information
have been separately published, but only if all material features comprising
such information have been published in combination.

      (b)   As used in this Agreement, the term "Proprietary Information" means
all information of a confidential or proprietary nature (whether or not
specifically labeled or identified as "confidential"), in any form or medium,
that relates to or results from the business, historical or projected financial
results, products, services or research or development of Employer or its
Affiliates or their respective suppliers, distributors, customers, independent
contractors or other business relations. Proprietary Information includes, but
is not limited to, the following: (i) internal business information (including,
without limitation, historical and projected financial information and budgets
and information relating to strategic and staffing plans and practices,
business, training, marketing, promotional and sales plans and practices, cost,
rate and pricing structures and accounting and business methods); (ii)
identities of, individual requirements of, specific contractual arrangements
with, and information about, Employer's and its Affiliates' suppliers,
distributors, customers, independent contractors or other business relations and
their confidential information; (iii) trade secrets, technology, know-how,
compilations of data and analyses, techniques, systems, formulae, research,
records, reports, manuals, flow charts, documentation, models, data and data
bases relating thereto; (iv) computer software, including, without limitation,
operating systems, applications and program listings; (v) inventions,
innovations, ideas, devices, improvements, developments, methods, processes,
designs, analyses, drawings, photographs, reports and all similar or related
information (whether or not patentable and whether or not reduced to practice);
(vi) copyrightable works; (vii) intellectual property of every kind and
description; and (viii) all similar and related information in whatever form.

8.    EMPLOYER'S OWNERSHIP OF INTELLECTUAL PROPERTY.

      (a)   In the event that Executive during the term of her employment by
Employer generates, authors, conceives, develops, acquires, makes, reduces to
practice or contributes to any idea, discovery, trade secret, invention,
innovation, improvement, development, method of doing business, process,
program, design, analysis, drawing, report, data, software, firmware, logo,
device, method, product or any similar or related information (whether or not
patentable or reduced to practice or comprising Proprietary Information), any
copyrightable work (whether or not comprising Proprietary Information) or any
other form of Proprietary Information (collectively, "Intellectual Property"),
Executive acknowledges that such Intellectual Property is and shall be the
exclusive property of Employer. Any copyrightable work prepared in whole or in
part by Executive shall to be deemed "a work made for hire" to the maximum
extent permitted under Section 201(b) of the 1976 Copyright Act as amended, and
Employer shall own all of the rights comprised in the copyright therein. Without
limiting the generality of the foregoing, Executive hereby assigns her entire
right, title and interest in and to all Intellectual Property to Employer.
Executive shall promptly and fully disclose all Intellectual Property to
Employer and shall cooperate with Employer to protect Employer's interests in
and rights to such Intellectual Property (including, without limitation,
providing reasonable assistance in securing patent protection and copyright
registrations and executing all documents as reasonably requested by Employer,
whether such requests occur prior to or after termination of Executive's
employment with Employer).

      (b)   Notwithstanding the foregoing, however, Employer shall not own and
Executive shall have no obligation to assign to Employer any invention otherwise
falling within the definition of Intellectual Property for which no equipment,
supplies, facility, or trade secret information of Employer was used and that
was developed entirely on Executive's own time, unless: (i) such Intellectual
Property relates (A) to Employer's business or (B) to their actual or
demonstrably anticipated research or development, or (ii) the Intellectual
Property results from any work performed by him for them under this Agreement.
Executive has identified and described in detail on an attachment hereto
initialed by each of the undersigned party's or their authorized
representatives, all Intellectual Property that is or was owned by him or was
written, discovered, made, conceived or first reduced to practice by him alone
or jointly with another person prior to her employment under this Agreement. If
no such Intellectual Property is listed, Executive represents to Employer that
she does not now nor has she ever owned, nor has she made, any such Intellectual
Property.

                                       5
<PAGE>

9.    ARBITRATION.

      (a)   Arbitrable Claims. To the fullest extent permitted by law, all
disputes between Executive (and her attorneys, successors, and assigns) and
Employer (and its Affiliates, shareholders, directors, officers, employees,
agents, successors, attorneys, and assigns) of any kind whatsoever, including,
without limitation, all disputes relating in any manner to the employment or
termination of Executive, and all disputes arising under this Agreement
("Arbitrable Claims") shall be resolved by arbitration. All persons and entities
specified in the preceding sentence (other than Employer and Executive) shall be
considered third-party beneficiaries of the rights and obligations created by
this Section on Arbitration. Arbitrable Claims shall include, but are not
limited to, contract (express or implied) and tort claims of all kinds, as well
as all claims based on any federal, state, or local law, statute, or regulation,
excepting only claims under applicable workers' compensation law and
unemployment insurance claims. By way of example and not in limitation of the
foregoing, Arbitrable Claims shall include (to the fullest extent permitted by
law) any claims arising under Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act, the Americans with Disabilities Act, and the
Rev. Code of Washington Sections 49.45.010 et. seq. and 49.60.010 et.seq., as
well as any claims asserting wrongful termination, harassment, breach of
contract, breach of the covenant of good faith and fair dealing, negligent or
intentional infliction of emotional distress, negligent or intentional
misrepresentation, negligent or intentional interference with contract or
prospective economic advantage, defamation, invasion of privacy, and claims
related to disability.

      (b)   Procedure. Arbitration of Arbitrable Claims shall be in accordance
with the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association, as amended ("AAA Employment Rules"), as
augmented in this Agreement. Arbitration shall be initiated as provided by the
AAA Employment Rules, although the written notice to the other party initiating
arbitration shall also include a statement of the claim(s) asserted and the
facts upon which the claim(s) are based. Arbitration shall be final and binding
upon the parties and shall be the exclusive remedy for all Arbitrable Claims.
Either party may bring an action in court to compel arbitration under this
Agreement and to enforce an arbitration award. Otherwise, neither party shall
initiate or prosecute any lawsuit or administrative action in any way related to
any Arbitrable Claim. Notwithstanding the foregoing, either party may, at its
option, seek injunctive relief pursuant to chapter 7.40 of the Revised Code of
Washington. All arbitration hearings under this Agreement shall be conducted in
Los Angeles County. The decision of the arbitrator shall be in writing and shall
include a statement of the essential conclusions and findings upon which the
decision is based. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY
JURY IN REGARD TO ARBITRABLE CLAIMS, INCLUDING WITHOUT LIMITATION ANY RIGHT TO
TRIAL BY JURY AS TO THE MAKING, EXISTENCE, VALIDITY, OR ENFORCEABILITY OF THE
AGREEMENT TO ARBITRATE.

      (c)   Arbitrator Selection and Authority. All disputes involving
Arbitrable Claims shall be decided by a single arbitrator. The arbitrator shall
be selected by mutual agreement of the parties within thirty (30) days of the
effective date of the notice initiating the arbitration. If the parties cannot
agree on an arbitrator, then the complaining party shall notify the AAA and
request selection of an arbitrator in accordance with the AAA Employment Rules.
The arbitrator shall have only such authority to award equitable relief,
damages, costs, and fees as a court would have for the particular claim(s)
asserted. The fees of the arbitrator shall be paid by the non-prevailing party.
If the allocation of responsibility for payment of the arbitrator's fees would
render the obligation to arbitrate unenforceable, the parties authorize the
arbitrator to modify the allocation as necessary to preserve enforceability. The
arbitrator shall have exclusive authority to resolve all Arbitrable Claims,
including, but not limited to, whether any particular claim is arbitrable and
whether all or any part of this Agreement is void or unenforceable.

      (d)   Confidentiality. All proceedings and all documents prepared in
connection with any Arbitrable Claim shall be confidential and, unless otherwise
required by law, the subject matter thereof shall not be disclosed to any person
other than the parties to the proceedings, their counsel, witnesses and experts,
the arbitrator, and, if involved, the court and court staff. All documents filed
with the arbitrator or with a court shall be filed under seal. The parties shall
stipulate to all arbitration and court orders necessary to effectuate fully the
provisions of this subsection concerning confidentiality.

      (e)   Continuing Obligations. The rights and obligations of Executive and
Employer set forth in this Section 9 shall survive the termination of
Executive's employment and the expiration of this Agreement.

                                       6
<PAGE>

10.   EXECUTIVE'S REPRESENTATIONS. Executive hereby represents and warrants to
Employer that (i) the execution, delivery and performance of this Agreement by
Executive does not and shall not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or decree to
which Executive is a party or by which she is bound, (ii) Executive is not a
party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery of this Agreement by Employer, this Agreement shall be
the valid and binding obligation of Executive, enforceable in accordance with
its terms.

11.   NOTICES. Any notice or other communication under this Agreement must be in
writing and shall be effective upon delivery by hand, or three (3) business days
after deposit in the United States mail, postage prepaid, certified or
registered, and addressed to Employer or to Executive at the corresponding
address below. Executive shall be obligated to notify Employer in writing of any
change in her address. Notice of change of address shall be effective only when
done in accordance with this Section.

Employer's Notice Address:

SeaBright Insurance Company f/k/a
Kemper Employers Insurance Company
2101 4th Avenue, Suite 1600
Seattle, WA  98121
Attn: President
Telecopy: (206) 448-4442

with a copy to:

Kirkland & Ellis LLP
200 East Randolph
Chicago, IL 60601
Attn: Ted H. Zook, P.C.
      Stephen D. Oetgen
Telecopy: (312) 861-2200

Executive's Notice Address:

Ms. Debra Drue Wax
1150 Cedarcrest Lane
Bannockburn, IL 60015

12.   ACTION BY EMPLOYER. All actions required or permitted to be taken under
this Agreement by Employer, including, without limitation, exercise of
discretion, consents, waivers, and amendments to this Agreement, shall be made
and authorized only by the chief executive officer of Holdings or Employer.

13.   INTEGRATION. This Agreement is intended to be the final, complete, and
exclusive statement of the terms of Executive's employment by Employer. This
Agreement supersedes all other prior and contemporaneous agreements and
statements, whether written or oral, express or implied, pertaining in any
manner to the employment of Executive, and it may not be contradicted by
evidence of any prior or contemporaneous statements or agreements. To the extent
that the practices, policies, or procedures of Employer, now or in the future,
apply to Executive and are inconsistent with the terms of this Agreement, the
provisions of this Agreement shall control.

14.   AMENDMENTS; WAIVERS. This Agreement may not be amended except by an
instrument in writing, signed by each of the parties. No failure to exercise and
no delay in exercising any right, remedy, or power under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, remedy, or power under this Agreement preclude any other or further
exercise thereof, or the exercise of any other right, remedy, or power provided
herein or by law or in equity.

                                       7
<PAGE>

15.   ASSIGNMENT; SUCCESSORS AND ASSIGNS. Executive agrees that she will not
assign, sell, transfer, delegate, or otherwise dispose of, whether voluntarily
or involuntarily, or by operation of law, any rights or obligations under this
Agreement. Any such purported assignment, transfer, or delegation shall be null
and void. Nothing in this Agreement shall prevent the consolidation of Employer
with, or its merger into, any other entity, or the sale by Employer of all or
substantially all of its assets, or the assignment by Employer of any rights or
obligations under this Agreement. Subject to the foregoing, this Agreement shall
be binding upon and shall inure to the benefit of the parties and their
respective heirs, legal representatives, successors, and permitted assigns, and
shall not benefit any person or entity other than those specifically enumerated
in this Agreement

16.   SEVERABILITY. If any provision of this Agreement, or its application to
any person, place, or circumstance, is held by an arbitrator or a court of
competent jurisdiction to be invalid, unenforceable, or void, such provision
shall be enforced to the greatest extent permitted by law, and the remainder of
this Agreement and such provision as applied to other persons, places, and
circumstances shall remain in full force and effect.

17.   ATTORNEYS' FEES. In any legal action, arbitration, or other proceeding
brought to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys' fees and costs.

18.   GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the law of the State of Washington.

19.   INTERPRETATION. This Agreement shall be construed as a whole, according to
its fair meaning, and not in favor of or against any party. By way of example
and not in limitation, this Agreement shall not be construed in favor of the
party receiving a benefit nor against the party responsible for any particular
language in this Agreement. Captions are used for reference purposes only and
should be ignored in the interpretation of the Agreement.

20.   EMPLOYEE ACKNOWLEDGMENT. Executive acknowledges that she has had the
opportunity to consult legal counsel in regard to this Agreement, that she has
read and understands this Agreement, that she is fully aware of its legal
effect, and that she has entered into it freely and voluntarily and based on her
own judgment and not on any representations or promises other than those
contained in this Agreement.

      The parties have duly executed this Agreement as of the date first written
above.

                                                /s/ Debra Drue Wax
                                                --------------------------------
                                                DEBRA DRUE WAX

                                                SEABRIGHT INSURANCE COMPANY

                                                /s/ John G. Pasqualetto
                                                --------------------------------
                                                By: John G. Pasqualetto
                                                Its: President and CEO

                                        8
<PAGE>

                                    Exhibit A

                                 GENERAL RELEASE

      I, Debra Drue Wax, in consideration of and subject to the performance by
SeaBright Insurance Company, an Illinois domiciled insurance company (together
with its subsidiaries, the "Company"), of its obligations under the Employment
Agreement, dated as of March 25, 3005 (the "Agreement"), do hereby release and
forever discharge as of the date hereof the Company and its affiliates and all
present and former directors, officers, agents, representatives, employees,
successors and assigns of the Company and its affiliates and the Company's
direct or indirect owners (collectively, the "Released Parties") to the extent
provided below.

1.    I understand that any payments or benefits paid or granted to me under
      Section 4(a) of the Agreement represent, in part, consideration for
      signing this General Release and are not salary, wages or benefits to
      which I was already entitled. I understand and agree that I will not
      receive the payments and benefits specified in Section 4(a) of the
      Agreement unless I execute this General Release and do not revoke this
      General Release within the time period permitted hereafter or breach this
      General Release. Such payments and benefits will not be considered
      compensation for purposes of any employee benefit plan, program, policy or
      arrangement maintained or hereafter established by the Company or its
      affiliates. I also acknowledge and represent that I have received all
      payments and benefits that I am entitled to receive (as of the date
      hereof) by virtue of any employment by the Company.

2.    Except as provided in paragraph 4 below and except for the provisions of
      my Employment Agreement which expressly survive the termination of my
      employment with the Company, I knowingly and voluntarily (for myself, my
      heirs, executors, administrators and assigns) release and forever
      discharge the Company and the other Released Parties from any and all
      claims, suits, controversies, actions, causes of action, cross-claims,
      counter-claims, demands, debts, compensatory damages, liquidated damages,
      punitive or exemplary damages, other damages, claims for costs and
      attorneys' fees, or liabilities of any nature whatsoever in law and in
      equity, both past and present (through the date this General Release
      becomes effective and enforceable) and whether known or unknown,
      suspected, or claimed against the Company or any of the Released Parties
      which I, my spouse, or any of my heirs, executors, administrators or
      assigns, may have, which arise out of or are connected with my employment
      with, or my separation or termination from, the Company (including, but
      not limited to, any allegation, claim or violation, arising under: Title
      VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of
      1991; the Age Discrimination in Employment Act of 1967, as amended
      (including, without limitation, the Older Workers Benefit Protection Act);
      the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act
      of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment
      Retraining and Notification Act; the Employee Retirement Income Security
      Act of 1974; any applicable Executive Order Programs; the Fair Labor
      Standards Act; or their state or local counterparts; or under any other
      federal, state or local civil or human rights law, or under any other
      local, state, or federal law, regulation or ordinance; or under any public
      policy, contract or tort, or under common law; or arising under any
      policies, practices or procedures of Employer; or any claim for wrongful
      discharge, breach of contract, infliction of emotional distress,
      defamation; or any claim for costs, fees, or other expenses, including
      (without limitation) attorneys' fees incurred in these matters) (all of
      the foregoing collectively referred to herein as the "Claims").

3.    I represent that I have made no assignment or transfer of any right,
      claim, demand, cause of action, or other matter covered by paragraph 2
      above.

4.    I agree that this General Release does not waive or release any rights or
      claims that I may have under the Age Discrimination in Employment Act of
      1967 which arise after the date I execute this General Release. I
      acknowledge and agree that my separation from employment with the Company
      in compliance with the terms of the Agreement shall not serve as the basis
      for any claim or action (including, without limitation, any claim under
      the Age Discrimination in Employment Act of 1967).

5.    In signing this General Release, I acknowledge and intend that it shall be
      effective as a bar to each and every one of the Claims hereinabove
      mentioned or implied. I expressly consent that this General Release shall
      be given full force and effect according to each and all of its express
      terms and provisions, including, without limitation, those relating to
      unknown and unsuspected Claims (notwithstanding any state statute that
      expressly

                                       A-1
<PAGE>

      limits the effectiveness of a general release of unknown, unsuspected and
      unanticipated Claims), if any, as well as those relating to any other
      Claims hereinabove mentioned or implied. I acknowledge and agree that this
      waiver is an essential and material term of this General Release and that
      without such waiver the Company would not have agreed to the terms of the
      Agreement. I further agree that in the event I should bring a Claim
      seeking damages against the Company, or in the event I should seek to
      recover against the Company in any Claim brought by a governmental agency
      on my behalf, this General Release shall serve as a complete defense to
      such Claims. I further agree that I am not aware of any pending charge or
      complaint of the type described in paragraph 2 as of the execution of this
      General Release.

6.    I represent that I am not aware of any claim by me other than the claims
      that are released by this Agreement.

7.    I agree that neither this General Release, nor the furnishing of the
      consideration for this General Release, shall be deemed or construed at
      any time to be an admission by the Company, any Released Party or myself
      of any improper or unlawful conduct.

8.    I agree that I will forfeit all amounts payable by the Company pursuant to
      the Agreement if I challenge the validity of this General Release. I also
      agree that if I violate this General Release by suing the Company or the
      other Released Parties, I will pay all costs and expenses of defending
      against the suit incurred by the Released Parties, including (without
      limitation) reasonable attorneys' fees, and return all payments received
      by me pursuant to the Agreement.

9.    I agree that this General Release is confidential and agree not to
      disclose any information regarding the terms of this General Release,
      except to my immediate family and any tax, legal or other counsel I have
      consulted regarding the meaning or effect hereof or as required by law,
      and I will instruct each of the foregoing not to disclose the same to
      anyone.

10.   Any non-disclosure provision in this General Release does not prohibit or
      restrict me (or my attorney) from responding to any inquiry about this
      General Release or its underlying facts and circumstances by the
      Securities and Exchange Commission (SEC), the National Association of
      Securities Dealers, Inc. (NASD), any other self-regulatory organization or
      governmental entity.

11.   I agree to reasonably cooperate with the Company in any internal
      investigation or administrative, regulatory, or judicial proceeding. I
      understand and agree that my cooperation may include, but not be limited
      to, making myself available to the Company upon reasonable notice for
      interviews and factual investigations; appearing at the Company's request
      to give testimony without requiring service of a subpoena or other legal
      process; volunteering to the Company pertinent information; and turning
      over to the Company all relevant documents which are or may come into my
      possession all at times and on schedules that are reasonably consistent
      with my other permitted activities and commitments. I understand that in
      the event the Company asks for my cooperation in accordance with this
      provision, the Company will reimburse me solely for reasonable travel
      expenses, including, without limitation, lodging and meals, upon my
      submission of receipts.

12.   I agree not to disparage the Company, its past and present investors,
      officers, directors or employees or its affiliates and to keep all
      confidential and proprietary information about the past or present
      business affairs of the Company and its affiliates confidential unless a
      prior written release from the Company is obtained. I further agree that
      as of the date hereof, I have returned to the Company any and all
      property, tangible or intangible, relating to its business, which I
      possessed or had control over at any time (including, but not limited to,
      company-provided credit cards, building or office access cards, keys,
      computer equipment, manuals, files, documents, records, software, customer
      data base and other data) and that I shall not retain any copies,
      compilations, extracts, excerpts, summaries or other notes of any such
      manuals, files, documents, records, software, customer data base or other
      data.

13.   Notwithstanding anything in this General Release to the contrary, this
      General Release shall not relinquish, diminish, or in any way affect any
      rights or claims (i) arising out of any breach by the Company or by any
      Released Party of the Agreement after the date hereof (ii) to
      indemnification for which I may be entitled to as a former officer or
      director of the Company under their respective charter and/or bylaws
      and/or other constituent documents so long as I am otherwise entitled to
      be indemnified as authorized thereunder.

                                       A-2
<PAGE>

14.   Whenever possible, each provision of this General Release shall be
      interpreted in, such manner as to be effective and valid under applicable
      law, but if any provision of this General Release is held to be invalid,
      illegal or unenforceable in any respect under any applicable law or rule
      in any jurisdiction, such invalidity, illegality or unenforceability shall
      not affect any other provision or any other jurisdiction, but this General
      Release shall be reformed, construed and enforced in such jurisdiction as
      if such invalid, illegal or unenforceable provision had never been
      contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

            (i)    I HAVE READ IT CAREFULLY;

            (ii)   I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP
                   IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER
                   THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED,
                   TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE
                   EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF
                   1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
                   1974, AS AMENDED;

            (iii)  I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

            (iv)   I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE
                   EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND
                   CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

            (v)    I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF
                   THIS RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON March 25,
                   2005 TO CONSIDER IT AND THE CHANGES MADE SINCE THE March 25,
                   2005 VERSION OF THIS RELEASE ARE NOT MATERIAL AND WILL NOT
                   RESTART THE REQUIRED 21-DAY PERIOD;

            (vi)   THE CHANGES TO THE AGREEMENT SINCE March 25, 2005 EITHER ARE
                   NOT MATERIAL OR WERE MADE AT MY REQUEST.

            (vii)  I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF
                   THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT
                   BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD
                   HAS EXPIRED;

            (viii) I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY
                   AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH
                   RESPECT TO IT; AND

            (ix)   I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT
                   BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN
                   INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE
                   OF THE COMPANY AND BY ME.

DATE:  _____________                               _____________________________

                                       A-3

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