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Exhibit 10.3    
    

 
 

SONY ERICSSON MOBILE COMMUNICATIONS (USA) INC.    
    

 
  STANDARD DISTRIBUTOR AGREEMENT    
    

        This Standard Distribution Agreement ("Agreement") is entered into by and between Sony Ericsson Mobile Communications (USA) Inc., a Delaware corporation
with a principal place of business at 7001 Development Drive, Research Triangle Park, North Carolina, 27709 ("SEMC") and InfoSonics Corporation a California company with a principal place of business
at 6325 Lusk Blvd., Bldg. A, San Diego, CA 92121 ("Distributor"). As used in this Agreement, "Party" shall mean either SEMC or Distributor, as the case may be, and "Parties" shall mean both SEMC and
Distributor. 

        WHEREAS,
Distributor desires to purchase certain SEMC products and services for the purpose of resale to third parties: and, 

        WHERAS,
SEMC is willing to authorize Distributor to purchase certain products and services for resale in accordance with the terms and conditions expressly set forth in this Agreement: 

        NOW
THEREFORE, in consideration of the foregoing, the mutual covenants made in this Agreement and other good and valuable consideration, the sufficiency of which is hereby acknowledged,
SEMC and Distributor agree as follows: 

1.     APPOINTMENT  

        Distributor is granted a non-exclusive distributorship with respect to those SEMC products as listed on Attachment A (Product and Distributor Prices)
to this Agreement ("Products"). It is SEMC's intention to market, sell and support Products through a variety of direct and indirect distribution channels. Distributor acknowledges that SEMC may
appoint or assign or may have previously appointed or assigned other direct or indirect sales and/or support organizations whose Territory may overlap Distributor's Territory in whole or in part. 

2.     BUYER-SELLER RELATIONSHIP  

        The relationship between Distributor and SEMC under this Agreement is that of buyer and seller and nothing contained in this agreement shall be construed to
create a partnership, joint venture, or other agency relationship between the Parties. Distributor and its agents and employees shall under no circumstance be considered agents, employees or
representatives of SEMC, and they shall not hold themselves out as such to third parties, or attempt to enter into contracts or commitments in the name of or on behalf of SEMC or attempt to bind SEMC
in any respect whatsoever. 

3.     TERRITORY  

        Distributor is authorized to sell Products only for use within North America ("territory"). In no event shall Distributor sell Products for use or resale outside
of the Territory. Sale for resale outside the Territory shall constitute grounds for immediate termination of this Agreement. 

4.     RESERVED ACCOUNTS  

        Distributor is not authorized to solicit orders from, or sell Products to, the customer accounts listed on Attachment B (Reserved Accounts) to this Agreement.
Upon prior written notice, in its sole discretion and without consent or prior approval of Distributor, SEMC may add accounts to or remove accounts from Attachment B. In the event SEMC intends to add
additional companies to Attachment B it will provide Distributor with at least sixty (60) days prior notice. 

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5.     MINIMUM PURCHASE REQUIREMENT  

        During the initial term of this Agreement, Distributor shall purchase the minimum volume of Products set forth in Attachment C (Distributor Quota Requirements).
For subsequent terms SEMC shall establish similar requirements to be added to the terms of Attachment C. Distributor agrees that failure to achieve this minimum purchase volume shall constitute cause
for termination or non-renewal of this Agreement. Distributor further agrees not to contest termination or non-renewal for failure to achieve the minimum purchase volume
established in Attachment C. In the event this Agreement is renewed or extended beyond the initial Term, the Distributor Quota Requirement shall be reset and apply to the subsequent renewal or
extended term. In the event SEMC seeks to modify the Distributor Quota Requirement for any future extension or renewal term, SEMC shall provide distributor with notice thereof at least
forty-five (45) days prior to the expiration of the then-current term. 

6.     DISTRIBUTOR'S ACTIVITIES  

        Distributor shall: (a) use its best efforts to develop business, to promote sales, and to sell Products in the Territory; (b) maintain a sufficient
sales organization which will actively solicit the sale of Products, carry out promotional programs, and fully utilize any sales assistance furnished by SEMC; (c) maintain a representative and
adequate stock of Products (not less than 30 days of inventory) and include a representative listing of Products listed in Attachment A in any catalog Distributor may issue for use within the
Territory; and (d) provide on a periodic basis such information and reports of inventories, sales and other reporting as SEMC in the reasonable exercise of its judgment may request from time to
time. The obligations set forth in sub-section 6(c) above are contingent upon SEMC continuing to extend reasonable credit terms commensurate with Distributor's financial standing
and previous payment history with SEMC. 

7.     ORDERS  

        From time to time, and as otherwise required by this Agreement, Distributor shall issue orders to SEMC for the purchase of the Products. Such purchase orders will
include at least the following information: (a) reference to this Agreement, (b) Distributor's order number, (c) description of the Products, (d) applicable prices,
(e) location to which the Products are to be shipped, (f) location to which invoice(s) will be rendered for payment, and (g) requested delivery date. Subject to the terms of this
Agreement with respect to cancellation of orders, all such orders shall be binding purchase commitments of Distributor. SEMC, upon receipt of such order shall send either an acknowledgement of the
Order or a rejection of the order indicating the grounds upon which SEMC is unable to fulfill the requested order. 

8.     SHIPPING  

        Unless otherwise specified by SEMC, delivery of the products purchased by Distributor hereunder will be made FCA point of shipment to Distributor, freight prepaid
to destination, and risk of loss or damage passes to Distributor at delivery. SEMC shall not be required to ship said Products to Distributor at destination other than the place or places listed in
Attachment D (Ship to Locations). Distributor may add a reasonable number of ship-to locations within the continental United States upon no less than thirty (30) days prior written
notice to SEMC. Nothing contained herein shall require SEMC to accept additions to Attachment D, wherein the result would be that SEMC acts or otherwise serves as a drop or direct shipper to
Distributor's customers. Costs incurred in fulfilling any Distributor request for special handling or expedited delivery shall be paid by Distributor upon receipt of SEMC invoice. SEMC will provide
Distributor reasonable assistance with information necessary to complete required import or export documentation. 

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9.     SHIPPING DATES  

        Shipping dates are approximate and SEMC shall not be liable for delays in delivery or performance, or for failure to manufacture or deliver or perform due to
(i) acts of force majeure, as defined by this agreement, and other causes beyond its reasonable control, or (ii) acts of Distributor. In the event of such delay, the date of delivery or
of performance shall be extended for a period equal to the time of such delay, provided however, in all events, that any order the delivery of which is delayed more than sixty (60) days, other
than delay attributable to the acts or omissions of Distributor, shall automatically be deemed cancelled. Should Distributor refuse to take delivery of Products rightfully delivered under the terms of
this Agreement, SEMC shall invoice Distributor and Distributor shall make payment for such Products. Distributor may request that a scheduled delivery date be extended by up to thirty
(30) days. Distributor shall be responsible for any reasonable storage and handling charges incurred by SEMC as a result of any such delayed delivery request or any refusal of delivery by
Distributor. 

10.   CANCELLATION  

        All purchase orders are effective as of the date accepted by SEMC. Orders for custom Products shall not be subject to cancellation. Orders for standard Products
may be canceled by Distributor only by written request addressed to SEMC's Order Administration which arrives at least five (5) days prior to the scheduled delivery. Orders cancelled less than
thirty (30) days prior to the originally scheduled shipping date shall be subject to Distributor's payment of a restocking fee of fifteen percent (15%) of the price of Product(s) for which
Orders are cancelled. Distributor shall remit payment of such fees in conjunction with its cancellation request. 

11.   PRODUCT ALLOCATION  

        In the event of a shortage of any Product or Product model for any reason, SEMC shall have the right to allocate available Products or models among its other
customers in such manner as SEMC may consider to be equitable. 

12.   PRICES, TERMS AND CONDITIONS  

        Pricing for each Product is provided on Attachment A. If not provided, on Attachment A, pricing shall be as subsequently agreed between the parties in writing.
All prices provided in or in conjunction with this Agreement shall be in United States Dollars. All sales by SEMC to Distributor of Products shall be governed by (a) the provisions of this
Agreement and (b) those prices, discounts, and terms and conditions of sale as SEMC shall establish in writing and which shall be in effect at the time of shipment. Any provision of any
purchase order placed by Distributor which is inconsistent with the provisions of this Agreement or such terms and conditions of sale, or is in addition thereto, shall be null and void unless accepted
in writing expressly referencing and acknowledging amendment of this Agreement. Mere acceptance or acknowledgement of a purchase order or shipment of Product shall not be deemed an acceptance of any
different or additional terms and conditions. 

13.   TERMS OF PAYMENT; LATE CHARGES  

        Amounts due will be billed as shipments are made, and payment is due thirty (30) days from the date of invoice unless stated otherwise in writing signed by
SEMC after the date hereof. If invoices are not paid when due, Distributor agrees to pay late charges on the unpaid delinquent balance at the lesser rate of twenty-four percent (24%) per
annum compounded at the rate of two percent (2.0%) per month or the maximum rate allowed by law. If after default this contract is placed with an attorney for collection, Distributor agrees to pay
reasonable attorney's fees and legal expenses incurred in conjunction with collection efforts. SEMC reserves the right to withhold shipment of future orders in 

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the
event (i) payment for any of Distributor's previous orders is more than ten (10) days overdue, or (ii) Distributor has exceeded a credit limit established by SEMC. 

14.   CREDIT  

        SEMC may, but shall not be bound to, extend credit to Distributor, and it may in its absolute discretion change or withdraw at any time any credit terms
previously extended by it to Distributor. In the event that any indebtedness owing by Distributor to SEMC shall be past due, SEMC may at its option withhold further shipments or deliveries to
Distributor until all indebtedness to SEMC shall have been fully paid. In the event of any expiration or termination of this Agreement, all indebtedness
of either Party to the other Party under the terms of this Agreement shall become due and owing upon the date of such termination or expiration, regardless of the terms previously agreed to in respect
to such indebtedness. 

15.   TAXES  

        In addition to any price specified herein, Distributor shall pay the gross of any present or future sales, use, excise, value-added, or other similar tax
applicable to the price, sale or use of any products or services furnished hereunder by SEMC, or in lieu thereof Distributor shall furnish SEMC with a tax-exemption certificate acceptable
to the applicable taxing authorities and thereafter, as long as Distributor asserts the validity of such certificate, SEMC shall not invoice Distributor for any such taxes. 

16.   PRICE PROTECTION  

        Unless otherwise agreed in writing, any reduction by SEMC with respect to prices for a particular Product shall apply to any and all Products in Distributor's
inventory on the date of the price change and which were shipped to Distributor within the thirty (30) day period prior to the date of the price changes. For the avoidance of doubt, the price
protection benefits provided herein shall not apply with respect to: (1) rebates, incentives or other promotions, (2) pricing provided in association with less favorable terms and
conditions (3) pricing provided for greater purchase volume, (4) pricing provided in return for other additional consideration, (5) pricing for other territories or markets, and
(6) pricing offered to settle a dispute regarding Seller's alleged breach of an agreement with a third party. 

17.   SECURITY INTEREST  

        SEMC shall retain a security interest in the Products (as inventory of the Distributor) and in all proceeds and accounts receivable with respect thereto, until
such Products have been paid for in cash. Distributor agrees to perform all acts necessary to perfect and maintain such right and security interest in the Products. Distributor hereby agrees that this
Agreement, without any attachment indicating the price of the Products, may be filed as a financing statement in any appropriate jurisdiction for the perfection of such interest. 

18.   NO AUTHORITY TO ASSUME LIABILITIES  

        SEMC DOES NOT ASSUME ANY OBLIGATIONS OR LIABILITIES IN CONNECTION WITH THE SALE OF ITS PRODUCTS OTHER THAN THOSE EXPRESSLY STATED IN THIS INSTRUMENT. SEMC DOES
NOT AUTHORIZE ANY PERSON (INCLUDING DISTRIBUTOR) TO ASSUME FOR SEMC ANY OTHER OBLIGATIONS OR LIABILITIES. WARRANTIES OR REPRESENTATIONS MADE BY DISTRIBUTOR TO ITS CUSTOMERS WHICH EXCEED THOSE PROVIDED
BY SEMC IN THIS AGREEMENT SHALL BE THE SOLE RESPONSIBILITY OF DISTRIBUTOR. 

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19.   CONFIDENTIAL INFORMATION  

        Through their relationship the Parties may disclose certain information and materials concerning their business, plans, customers, technology, and products that
are confidential and of substantial value to the disclosing Party, which value would be impaired if such information were disclosed to third parties ("Confidential Information"). Each Party shall
treat as confidential and secret all Confidential Information received from the other Party, shall not use such Confidential Information except as expressly permitted under this Agreement, and shall
not disclose such Confidential Information to any third party without the other Party's prior written consent. Confidential Information may only be disclosed to personnel with a need to know such
information for the performance of this Agreement and to a such additional legal counsel, accountants, and executives with a legitimate need to know such information for a Party's internal business
purposes. Each Party shall take reasonable measures to prevent the disclosure and unauthorized use of Confidential Information of the other Party, but no less measures than such Party takes to protect
its own Confidential Information. Notwithstanding the above, the restrictions of this Section shall not apply to information that: (a) becomes publicly available without the fault of the
receiving Party; (b) is rightfully obtained by the receiving Party from a third party with the right to transfer such information; (c) is
independently developed by the receiving Party without the benefit of the disclosing Party's Confidential Information; (d) is otherwise transferred or authorized under the terms of this
Agreement; or (e) is disclosed pursuant to the order or requirement of a court, administrative agency, or other governmental body; provided, however, that the receiving Party shall provide
prompt notice thereof to the other Party and shall use its reasonable efforts to obtain a protective order or otherwise prevent public disclosure of such information. The receiving Party shall have
the burden of proving the existence of any condition (a) through (e) in this Section. Each Party acknowledges that its breach of this Section may cause irreparable harm to the other
Party. In addition to any other remedies to which a Party may be legally entitled, the non-breaching Party shall have the right to seek immediate equitable relief in the form of an
injunction, restraining order, or other similar order to prevent or curtail any breach. The existence and terms of this Agreement are Confidential. Neither Party, without the other's prior consent,
may make any statement, announcement, or publicity release as to the existence or nature of this Agreement. If the Parties agree to issue any such statement, the specific terms thereof shall be as
mutually agreed between the Parties. In the event of termination of this Agreement, there shall be no use or disclosure by a receiving Party of any confidential information of the disclosing Party for
a period of five (5) years. 

20.   PATENTS, INTELLECTUAL PROPERTY  

        As between SEMC and Distributor and and as between SEMC and Distributor's customers, employees, agents, consultants and contractors, SEMC retain all Intellectual
Property Rights in and to the Products and all related Product documentation. Purchaser agrees that it shall not: (i) reverse engineer, disassemble, decompile, interrogate or decode the
software or any data files created by or associated with the Product; (ii) derive source code, methodologies or proprietary algorithms from the software; (iii) modify the software or
otherwise create any derivative work from the software; (iv) assert the invalidity or contest the ownership by SEMC of the software, either as a complete or partial defense to any claim made by
SEMC or any third party, or (v) take any action which may prejudice the validity of SEMC's rights, title and interest in and to the Software. SEMC shall retain the exclusive right to reproduce,
publish, patent, copyright, sell, license and otherwise make use of the Products and any and all inventions, discoveries, improvements, updates and Enhancements relating to the Products. Purchaser
shall not make any modifications to the Products, nor remove or alter or translate any writings or etchings contained in or on the Products or the documentation delivered to Purchaser as part of the
Products without SEMC's prior written consent. 

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21.   TRADEMARKS  

        Distributor shall not use directly or indirectly, in whole or in part, any SEMC Trademark or Tradename, or any Trademark or Tradename of Sony Ericsson Mobile
Communications AB, its parents, subsidiaries or affiliates, SEMC, or any mark or name confusingly similar to any of the aforementioned (collectively "SEMC Marks"), as part of the Distributor's
corporate or business name or in any way in connection with Distributor's business, except in the manner and to the extent that SEMC may specifically consent to in writing. Upon the expiration or
termination of this Agreement, unless otherwise agreed, Distributor shall delete and discontinue all use of SEMC Marks. All uses of SEMC Marks shall be in accordance with written Guidelines
established by SEMC and provided to Distributor from time to time. 

22.   CHANGES  

        To the extent not otherwise prohibited or governed by the terms of this Agreement and to the extent a current binding Distributor order for Products is not
affected, SEMC shall have the right from time to time, in its absolute discretion, without incurring any liability to Distributor to: 

        (a).  change
the prices and distribution policies applicable to Products sold under this Agreement; 

        (b).  make
changes in the Products by withdrawing, altering or modifying any or all current Products or to substitute such altered products for the prior Products in filling
orders; 

        (c).  discontinue
or limit production of any Product. 

        It
is agreed that in the event any such changes materially diminish the ability to Distributor to sell Products, Distributor and SEMC shall work in good faith to make appropriate
adjustments to the Distributor Quota Requirements. 

23.   LIMITED WARRANTY  

        With respect to the Products, SEMC provides only the Limited Manufacturer's Warranty as contained in the materials provided with each Product. SEMC's sole
obligation with respect to valid warranty claims is to repair or replace the Product at SEMC's sole discretion. SEMC does not warrant that any software provided with or contained in the Product will
operate uninterrupted or error free. Warranty returns are subject to SEMC's reasonable repair and return policies in effect from time to time. SEMC's warranty obligations shall not apply to any
Product, or part thereof, which (i) has been modified or otherwise altered other than pursuant to SEMC's written instructions or written approval; (ii) is not properly stored, installed,
used, maintained or repaired by Distributor; (iii) has been subjected to any other kind of misuse or detrimental exposure; (iv) have been damaged due to use of non
SEMC-approved accessories; or (v) are not reported to SEMC as being defective or nonconforming within thirty (30) days of discovery. Distributor shall assume full
responsibility for resolution of warranty claims arising more than eighteen (18) months from the date of delivery of such Product to Distributor. 

        The
foregoing warranties are exclusive and in lieu of all other warranties, whether oral, written, expressed, implied or statutory. SEMC MAKES NO OTHER WARRANTIES, WHETHER IMPLIED,
EXPRESS OR STATUTORY, WHETHER BY USAGE OF TRADE, INDUSTRY CUSTOM, OR OTHERWISE, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR
NON-INFRINGEMENT. 

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24.   GENERAL INDEMNIFICATION  

        SEMC shall indemnify and hold Distributor harmless from any loss, claim, demand, liability and expense (including
reasonable attorney and expert witness fees) arising out of or in connection with personal injury or property damage (other than to the Product itself) to the extent such loss, claim, damage, or
liability arises out of any gross negligence or intentional misconduct of SEMC in its design or manufacture of the Product.  Distributorshall indemnify and
hold SEMC harmless from any loss,
claim, demand, liability and expense (including reasonable attorney and expert witness fees) arising out of or resulting from personal injury or property damage (other than to the Product itself) to
the extent such loss, claim, damage, or liability arises out of any gross negligence or intentional misconduct of Distributor or to the extent it arises
out of any negligent or unauthorized representations made by Distributor concerning the Products. 

25.   INDEMNITY FOR INFRINGEMENT  

        SEMC agrees to indemnify the Distributor and to hold the Distributor harmless from and against any and all liabilities, damages, costs and expenses (including
reasonable attorney and expert witness fees) incurred by Distributor as a result of any infringement or alleged infringement of any United States copyright or patent of a third party in consequence of
the the Distributor's use or possession of the Products or other material provided by SEMC in accordance with the provisions of this Agreement. Notwithstanding the foregoing, SEMC shall have no
obligation to indemnify Distributor with respect to any infringement or alleged infringement: (1) resulting from any modifications or alterations of any Products or other materials made by
Distributor or any third-party, to the extent such claim of infringement results from such alteration or modification; (2) resulting from any unauthorized use of the Products or other materials
by Distributor or any third party, to the extent the claim of infringement results from such unauthorized use, (3) resulting from Distributor's failure to implement a new software release which
would eliminate the claim of infringement, to the extent such software release is made available by SEMC. Distributor agrees to indemnify SEMC and to hold SEMC harmless from and against any and all
liabilities, damages, costs and expenses (including reasonable attorneys' fees) incurred by SEMC as a result of any infringement or alleged infringement of any United States copyright or patent of a
third party: (1) resulting from any modifications or alterations of any Products or other materials by or at the direction of Distributor, to the extent such claim of infringement results from
such alteration or modification; (2) resulting from any unauthorized use of the Products or other materials by or at the direction of Distributor, to the extent the claim of infringement
results from such unauthorized use, (3) resulting from Distributor's failure to implement a new software release which would eliminate the claim of infringement, to the extent such software
release is made available by SEMC. 

        If
a Product provided by SEMC is, or in the opinion of SEMC is likely to become, the subject of any action for infringement of any United States copyright or patent, or if such item is
adjudicated to infringe any United States copyright or patent, or if the use of the item is enjoined by any third party, then SEMC shall have the option either to: (1) obtain at its expense,
the right to continue use of the Product, (2) replace or modify the Product so that it becomes non-infringing, or (iii) terminate this Agreement and refund to purchaser the
purchase price for such Product less any depreciation attributable to prior use. THE PROVISIONS OF THIS SECTION ARE THE SOLE AND EXCLUSIVE OBLIGATIONS WITH RESPECT TO THE INFRINGEMENT OF ANY THIRD
PARTY'S INTELLECTUAL PROPERTY RIGHTS. 

26.   CONDITIONS OF INDEMNITY  

        The obligations of indemnity expressly created by this Agreement are conditioned upon (1) the Party seeking indemnification ("Indemnitee") providing the
other Party ("Indemnitor") provide prompt written notice of any alleged claim affecting the obligations of indemnity contained in this Section; 

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(2) Indemnitee
providing Indemnitor sole authority to control fully, at Indemnitor's expense, the defense and/or settlement of any such claim, provided any such settlement does not acknowledge
any wrongdoing on behalf of Indemnitee or create additional obligations for Indemnitee; and (3) Indemnitee furnishing all reasonable assistance and providing all appropriate documentation
requested by the indemnifying Party. 

27.   LIMITATION OF LIABILITY  

        EXCEPT WITH RESPECT TO ANY EXPRESS OBLIGATION FOR INDEMNITY PROVIDED BY SEMC IN THIS AGREEMENT, THE TOTAL LIABILITY OF SEMC ON ANY AND ALL CLAIMS, WHETHER IN
CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, OR RESULTING FROM THE PERFORMANCE OR NON-PERFORMANCE OF ANY OBLIGATION THEREUNDER OR FROM THE
MANUFACTURE, SALE, DELIVERY, RESALE, REPAIR, REPLACEMENT OR USE OF ANY PRODUCTS OR THE FURNISHING OF ANY SERVICE, SHALL NOT EXCEED THE PRICE ALLOCABLE TO THE PRODUCTS AND SERVICES PROVIDED TO
DISTRIBUTOR WHICH GIVE RISE TO THE CLAIM. 

        IN
NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING ANY LOSS OF INCOME, LOSS OF PROFITS, OR INCREASED CAPITAL COSTS,
REGARDLESS OF THE FORM OR NATURE OF ACTION, WHETHER IN CONTRACT, BREACH OF WARRANTY, STRICT LIABILITY, EQUITY, INDEMNITY, NEGLIGENCE, INTENDED CONDUCT, TORT OR OTHERWISE, EVEN IF SUCH DAMAGES WERE
FORSEEABLE OR IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE LIMITATIONS OF LIABILITY CONTAINED HEREIN SHALL NOT APPLY TO OR OTHERWISE LIMIT LIABILITY ARISING OUT ANY EXPRESS
OBLIGATION OF INDEMNITY PROVIDED IN THIS AGREEMENT. 

28.   CO-OP ADVERTISING ALLOWANCE  

        On a monthly basis throughout the Term of this Agreement, SEMC will contribute a dollar amount, equal to two percent (2%) of the invoiced price of any Products
purchased by Distributor during the previous month, to a cooperative marketing fund ("Co-Op"). Amounts will be provided as an available credit and may be used by Distributor solely in
connection with an "Authorized Co-Op Program." "Authorized Co-Op Program" means any marketing or promotion of the Products which: (a) is conducted in accordance with
SEMC's published guidelines provided to Distributor; and (b) is approved by SEMC and Distributor in advance of the Program, such
approval not to be unreasonably withheld. Except as properly utilized, due or owing in conjunction with an Authorized Co-Op Program, Co-Op is non-refundable and
shall in no event be applied as a credit against funds due and otherwise owing from Distributor to SEMC and shall not be provided to Distributor as cash or a cash equivalent. Co-Op must be
utilized by the earlier of (1) 6 months from the date of the Product sale from which such Co-Op accrued, or (2) February 15 of the year following the calendar
year in which they accrued. In the event Products are returned to and accepted by SEMC for credit, any Co-Op associated with the prior sale of such Product shall be deducted from
Distributor's available Co-Op balance, without any additional consideration provided or being otherwise due. For the avoidance of doubt, Co-Op is not applied retroactively and
is not included in purchases of Product arranged prior to the date hereof. 

29.   TERM  

        This Agreement shall be effective as of the date signed by both Parties and shall continue thereafter for a period of six (6) months, unless sooner
terminated in accordance with its terms. This Agreement shall automatically renew for successive periods of one year each, unless at least thirty 

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(30) days
prior to the expiration date of the then-current term, either Party provides the other Party with written notice of the intended expiration of this Agreement. 

30.   TERMINATION  

        In addition to any express termination rights granted elsewhere in this Agreement, this Agreement may be terminated as follows: 

        (a).  by
an agreement in writing signed by officers of both Parties. 

        (b).  by
either Party at will, with or without cause, upon not less than ninety (90) days' notice; or 

        (c).  by
SEMC, immediately, in the event Distributor attempts to assign this Agreement or any rights hereunder without SEMC's prior written consent. 

        (d).  by
either Party, upon five (5) days notice: (i) if the other Party ceases to function as a going concern or to conduct its operations in the normal course
of business (including but not limited to inability to
meet its obligations as they mature), (ii) if such other Party is subjected to a receivership or application therefore, (iii) if any proceeding under bankruptcy or insolvency laws is
brought by or against such other Party, or (iv) such other Party makes an assignment for the benefit of creditors. 

        (e).  by
either Party, after failure of the other to cure a material breach within thirty (30) days of its receipt of notice thereof; or, in the event of a breach,
other than non-payment of sums due, for which a cure which cannot otherwise be reasonably made within thirty (30) days, if the breaching party has not instituted best efforts to
remedy such breach within thirty (30) days from its receipt of notice thereof and fails to cure such breach within sixty (60) days of its receipt of such notice. 

31.   OBLIGATIONS AFTER TERMINATION  

        Except as expressly provided herein, expiration or termination of this agreement shall not relieve a Party of obligations accruing prior to the date of such
expiration or termination or which expressly survive expiration or termination. The provisions contained in this Agreement that by their nature and context are intended to survive the expiration or
termination of this Agreement or any Purchase Order hereunder shall survive such expiration or termination, including but not limited to sections 3, 4, 8-13, 15, 17-21,
23-27, 31-39, and 41-46. 

32.   SALES AFTER EXPIRATION OR TERMINATION  

        Upon expiration or termination, SEMC shall only be obligated to deliver orders for Product placed prior to the effective termination or expiration date. For
deliveries of Product occurring after termination or expiration of this Agreement, SEMC shall require advance payment or payment on delivery with respect to such Products. Notwithstanding the
foregoing and irrespective of the date of any prior purchase order, SEMC shall not be obligated to supply any additional Products to Distributor should this Agreement be terminated by SEMC for
Distributors non-payment of sums due. The acceptance of any order from, or the sale of any Products to, Distributor after the termination or expiration of distributorship hereby created
shall not be construed as a renewal or extension of this Agreement or as a waiver of termination, but, in the absence of a new written agreement signed on behalf of SEMC, all such transactions shall
be governed by provisions identical to the provisions of this agreement. 

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33.   NO LIABILITY FOR TERMINATION  

        Neither SEMC nor Distributor shall, by reason of the permitted amendment, termination or non-renewal of the terms of this Agreement be liable for any
loss, damage or injury incurred by a Party to the extent arising out of such permitted amendment, modification or non-renewal. 

34.   FORCE MAJEURE  

        Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this Agreement or related interruption of service resulting
directly or indirectly from acts of God, civil or military authority, acts of public enemy, war, accidents, fires, explosions, earthquakes, floods, the elements, epidemics, strikes, labor disputes,
shortages of fuel, power, suitable parts, materials, labor or transportation, whether in its own enterprise, or any cause beyond the reasonable control of such Party. In the above instances, time for
performance shall be extended for the period of the delay caused; provided however, that should the period of force majeure continue for thirty (30) consecutive days, either Party may terminate
any order for Product impacted thereby by such delay. 

35.   NOTICE  

        Any notice required to be given by any other Party to this Agreement shall be deemed given if in writing and if delivered by First Class Certified Mail Return
Receipt requested, confirmed facsimile or by established overnight courier. Notice shall be effective upon confirmed receipt. Notice shall be delivered as follows: 

	 	 	If to SEMC:	 	If to DISTRIBUTOR:
	 	 	 	 	 	 	 
	 	 	Attn:	General Legal Counsel	 	Attn:	Joseph Ram, President
	 	 	Address:	7001 Development Drive

Research Triangle Park, NC 27709	 	Address:	6325 Lusk Blvd., Bldg. A

San Diego, CA 92121
	 	 	Telephone:	(919) 472-6073	 	Telephone:	(858) 373-1600
	 	 	Fax:	(919) 472-7454	 	Fax:	(858) 373-1503

36.   CHOICE OF LAW  

        This Agreement and shall be construed and interpreted in accordance with the laws of the State of New York, without regards to its conflict of laws principles. It
is further expressly acknowledged that the provisions of the United Nations Convention on the International Sale of Goods shall not apply to activities conducted under or arising out of this
Agreement. Distributor hereby consents to and waives objection to the exclusive jurisdiction of the state and federal courts located within the State of North Carolina for resolution of any dispute or
claim arising out this Agreement as to which such court otherwise has subject matter jurisdiction. 

37.   DISPUTE RESOLUTION  

        In the event that a dispute arises over the interpretation or application of any provision of this Agreement or the grounds for termination hereof, or any matter
regarding this Agreement or the sale or transfer of any goods hereunder, either Party may request that the Parties meet within ten (10) business days of such request and seek to resolve the
dispute by negotiation of the appropriate officers of each Party. Such meetings shall be attended by individuals with decision-making authority, to attempt in good faith to negotiate a resolution of
the dispute prior to pursuing other available remedies. If, within ten (10) business days after the first such meeting, the Parties have not succeeded 

10

 

in
negotiating a resolution of the dispute, or if it has not been possible to schedule a meeting within ten (10) business days following request thereof by a Party the Parties shall be
free to pursue remedies available at law or in equity. Notwithstanding the foregoing, the Parties hereto acknowledge that a breach of this agreement may inflict continuing and irreparable damage, and
therefore, the aggrieved Party, in addition to any and all remedies it may have at law or in equity, shall have the right to seek equitable relief in the form of an injunction, restraining order, or
other similar order to prevent or curtail any such breach. The prevailing Party in any dispute shall be entitled to recover its costs, fees, and expenses incurred in the course of pursuing or
defending such dispute, including but not limited to its reasonable attorney fees. Fees for use of in-house corporate counsel shall be charged at the prevailing rate for counsel practicing
in the private sector in the locale of such Party. 

38.   IMPORT/EXPORT  

        To the extent export is permitted by this Agreement, Distributor will not knowingly export or re-export, directly or indirectly, any technical data
(as defined by the U.S. Export Administration Regulations), including Products or Product spare parts, to a destination to which such export or re-export is restricted or prohibited by
U.S. or non-U.S. law without obtaining prior authorization from the requisite competent government authorities to the extent required by those laws; or export or re-export
directly or indirectly, any direct product of such technical data, including software, to a destination to which such export or re-export is restricted or prohibited by U.S. or
non-U.S. law without obtaining prior authorization from the requisite competent government authorities to the extent required by those laws. 

39.   COMPLIANCE WITH LAWS  

        The Parties will comply with the provisions of all federal, state, county, and local laws, ordinances, regulations, and codes in its performance of this
Agreement. Specifically, to the extent this Agreement contemplates activities outside of the United States, the Parties shall act in conformity with the U.S. Foreign Corrupt Practices Act, the OECD
Treaty and other similar national law, as applicable. Each Party represents that neither it, nor any person employed by it or representing it, has made, offered, provided or authorized, or will make,
offer, promise or authorize, directly or indirectly, any payment or transfer of anything of value to any official, representative or employee of any government agency or instrumentality, any political
Party or officer thereof, or any candidate for public office for the purpose of influencing a decision by any of them to take actions favorable to SEMC or Distributor on any matter related directly or
indirectly to the subject of this Agreement, including, without limitation, the purchase or supply of goods or services. 

40.   AUDIT  

        At reasonable times and upon reasonable notice either Party may audit and inspect the business records of the other Party as is necessary in order to determine
such other Party's compliance with the terms of this Agreement. The Party conducting any audit under this section shall be responsible for its costs and expenses in administering the audit. 

41.   WAIVER  

        The failure of either Party to require performance by the other Party of any provision hereof shall not affect the full right to require such performance at any
time thereafter; nor shall the waiver of either Party of a breach of any provision hereof be taken or held to be the waiver of the provision itself. Any waiver, to be effective, must be in writing, be
signed by the waiving Party, and expressly state the right or obligation waived thereby. 

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42.   COUNTERPARTS  

        This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 

43.   HEADINGS  

        The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

44.   ENTIRE AGREEMENT  

        This Agreement sets forth the entire agreement of the Parties relating to the subject matter hereof and supersedes all prior and collateral written or oral
understandings, agreements, negotiations, commitments, or representations by or between the Parties with respect to its subject matter. 

45.   ASSIGNMENT  

        Neither Party may assign any of its obligations, rights or interests under this Agreement without first obtaining the written approval of the other Party, such
approval not to be unreasonably withheld. 

46.   SEVERABILITY  

        In the event any provision of this Agreement shall be unenforceable or invalid under any applicable law or be so held by applicable court decision, such
unenforceability or invalidity shall not render this agreement unenforceable or invalid as a whole and the Parties' obligations hereunder shall continue. The Parties agree to replace the invalid or
unenforceable provision with such enforceable or valid terms and conditions as to the greatest extent possible represent the original intent of the Parties. 

47.   AUTHORITY  

        Each signatory hereto warrants that they have obtained all necessary authorization and consents to bind their respective Parties hereto, and that by signing they
create a binding commitment by such Party to the terms hereof. 

        IN
WITNESS WHEREOF, SEMC and Distributor have executed this Agreement effective as of the date of the last signature affixed below. 

	SEMC:

SONY ERICSSON MOBILE CORPORATION

COMMUNICATIONS (USA) INC.	 	DISTRIBUTOR:

INFOSONICS
	 	 	 	 	 
	By:	/s/  GARY MENEES      
	 	By:	/s/  JOSEPH RAM      

	 	 	 	 	 
	Print Name:	Gary Menees
	 	Print Name:	Joseph Ram

	 	 	 	 	 
	Title:	Vice President of Sales, T-Mobile
	 	Title:	President

	 	 	 	 	 
	Date:	August 18, 2003
	 	Date:	August 19, 2003

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QuickLinks

Exhibit 10.3

SONY ERICSSON MOBILE COMMUNICATIONS (USA) INC.

STANDARD DISTRIBUTOR AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.4    
    

 
 

STOCK PURCHASE AGREEMENT    
    

        This Stock Purchase Agreement (the "Agreement") is entered into between and among InfoSonics Corporation, a Maryland corporation ("InfoSonics"), InfoSonics
Mexico, Inc., a California corporation ("InfoSonics Mexico"), Joseph Ram ("Ram") and Abraham Rosler ("Rosler") to be effective as of January 26, 2004 (the "Effective Date"). InfoSonics
and InfoSonics Mexico together are referred to as the "Purchasers", and Ram and Rosler together are referred to as the "Sellers". For purposes of this Agreement, each Purchaser and each Seller shall
be referred to individually as a "Party" and all of them shall be referred to collectively as the "Parties". 

Recitals  

        A.    Sellers
desire to sell an aggregate of 100 shares (the "Shares") of the common stock of InfoSonics de Mexico, S.A. DE C.V., a corporation formed under the laws of Mexico
(the "Company"). 

        B.    Sellers
wish to sell the Shares to Purchasers, and Purchasers wish to purchase the Shares from Sellers, according to the terms and conditions of this Agreement. 

Agreement  

        In consideration of the premises and of the mutual covenants contained in this Agreement, the Parties agree as follows: 

        1.     Purchase And Sale Of Shares. 

        1.1   Purchase And Sale. Subject to the terms and conditions of this Agreement: 

        (a)   Ram
agrees to sell to InfoSonics Mexico, and InfoSonics Mexico agrees to purchase from Ram, 85 Shares; 

        (b)   Rosler
agrees to sell to InfoSonics Mexico, and InfoSonics Mexico agrees to purchase from Rosler, 14 Shares; 

        (c)   Rosler
agrees to sell to InfoSonics, and InfoSonics agrees to purchase from Rosler, 1 Share; and 

        (d)   Purchasers
agree to pay Sellers an aggregate of $3,600.00 (the "Purchase Price") for all the Shares. Sellers agree that the Purchase Price shall be paid $1,800.00 to Ram
and $1,800.00 to Rosler even though Ram is selling 85 of the Shares and Rosler is selling 15 of the Shares. 

        1.2   Closing. The purchase and sale of the Shares shall be consummated in the manner described in this Section 1.2.
Upon the signing of this Agreement by all Parties and the delivery of a counterpart of the signed Agreement by each Party to the other Parties, this Agreement shall be binding upon each Party, and the
following shall occur immediately thereafter: 

        (a)   Each
Purchaser shall deliver to the appropriate Seller the portion of the Purchase Price set forth in Section 1.1(d) in the form of a check or bank draft. 

        (b)   Sellers
shall deliver to the Purchasers the certificates representing the appropriate Shares together with Stock Powers And Assignments in the form of  Exhibit A attached to and made a part of this
Agreement, which Stock Powers And Assignments shall be signed on behalf of each Seller. 

 

        2.     Representations Of Sellers. Each Seller represents, warrants and agrees to and with Purchasers as follows as of the
Effective Date and as of the Closing Date: 

        (a)   Ram
is the sole beneficial, legal, and record owner of 85 of the Shares. Rosler is the sole beneficial, legal, and record owner of 15 of the Shares; 

        (b)   Each
Seller has full power, authority, and legal right to sell his respective portion of the Shares; 

        (c)   There
are no claims, liens, or other encumbrances on the Shares; 

        (d)   This
Agreement constitutes a legal and binding obligation of each Seller, and is valid and enforceable against each Seller and each Seller's successors in accordance
with its terms; 

        (e)   There
are no other restrictions on the Sellers' rights or ability to sell the Shares to Purchasers; and 

        (f)    The
Shares constitute all issued and outstanding shares of the capital or equity securities of the Company and the Company has no agreement or other obligation to issue
capital or equity securities to any person or entity. 

        3.     Representations Of Purchasers. Purchasers hereby represent, warrant, and agree to and with Seller as follows: 

        (a)   Each
Purchaser has full power, authority, and legal right to purchase the Shares from Sellers, and the execution of this Agreement by each Purchaser does not require the
consent of, or notice to, any party not previously obtained or given; 

        (b)   This
Agreement constitutes a legal and binding obligation of each Purchaser, and is valid and enforceable against each Purchaser and each Purchaser's successors in
accordance with its terms; 

        (c)   Each
Purchaser has had the opportunity to discuss the sale of the Shares with Sellers and the Company, and each Purchaser has obtained or been given access to all
information concerning the Company that each Purchaser has requested; 

        (d)   Each
Purchaser understands that the Shares and the transfer of Shares pursuant to this Agreement have not been registered under federal or state securities laws and the
Shares are "restricted" securities as defined in Rule 144 under the Securities Act of 1933, as amended (the "Act"). Each Purchaser understands that it may not sell, offer for sale, transfer,
pledge or hypothecate the Shares in the absence of an effective registration statement covering that transaction, under all applicable federal and state securities laws, unless that transaction is
exempt from registration under all applicable federal and state securities laws, including an exemption under Rule 144 promulgated under the Act; 

        (e)   Each
Purchaser understands that each of the Sellers is a director, officer, and major stockholder of the Company; and 

        4.     Additional Covenants. 

        4.1   Brokerage Commissions And Finders' Fees. Purchasers shall indemnify and hold harmless each Seller from any loss, cost or
expense arising out of any claim for brokerage commissions, finders' fees or other like payment with respect to this Agreement or other transfer of the Shares if such claim is based upon any agreement
or understanding with each Purchaser or such Purchaser's representatives or agents. Each Seller shall indemnify and hold harmless each Purchaser from any loss, cost, or expense arising out of a claim
for brokerage commissions, finders' fees or other like payment with respect to this Agreement or the transfer of the Shares if such 

2

 

claim
is based upon any agreement or understanding with either Seller or any of either Seller's representatives or agents. 

        4.2   Expenses. Each respective Party will pay all expenses and fees of his or its legal counsel, accountants, and other agents
and advisers incurred pursuant to this Agreement regardless of whether the transactions contemplated in this Agreement are consummated. 

        5.     Miscellaneous. 

        5.1   Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter
hereof. 

        5.2   Notice. All notices, requests, demands, directions and other communications ("Notices") provided for in this Agreement
shall be in writing and shall be mailed or delivered personally or sent by telecopier or facsimile to the applicable Party at the address of such Party set forth below in this
Section 5.2. When mailed, each such Notice shall be sent by first class, certified mail, return receipt requested, enclosed in a postage prepaid wrapper, and shall be effective on the third
business day after it has been deposited in the mail. When delivered personally, each such Notice shall be effective when delivered to the address for the respective Party set forth in this
Section 5.2. When sent by telecopier or facsimile, each such Notice shall be effective on the first business day on which or after which it is sent. Each such Notice shall be addressed to the
Party to be notified as shown below: 

	Purchaser:	 	Info Sonics Corporation

6325 Lusk Blvd., Suite A

San Diego, California 92121

Facsimile No.: (858) 373-1507
	

Sellers:	
 	

Joseph Ram

6325 Lusk Blvd., Suite A

San Diego, California 92121

Facsimile No.: (858) 373-1507
	

 	
 	

Abraham Rosler

6325 Lusk Blvd., Suite A

San Diego, California 92121

Facsimile No.: (858) 373-1507

        Any
Party may change his or its respective address for purposes of this Section 5.2 by giving the other Party Notice of the new address in the manner set forth above. 

        5.3   Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be
effective and valid under applicable law, and if any provision of this Agreement shall be or become prohibited or invalid in whole or in part for any reason whatsoever, that provision shall be
ineffective only to the extent of such prohibition or invalidity without invalidating the remaining portion of that provision or the remaining provisions of this Agreement. 

        5.4   Non-Waiver. The waiver of any Party of a breach or a violation of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach or violation of any provision of this Agreement. 

        5.5   Amendment. No amendment or modification of this Agreement shall be deemed effective unless and until it has been executed
in writing by the Parties to this Agreement. No term or condition of this Agreement shall be deemed to have been waived, nor shall there by any estoppel to enforce any provision of this Agreement,
except by a written instrument that has been executed by the Party
charged with such waiver or estoppel. 

3

 

        5.6   Inurement. This Agreement shall be binding upon all of the Parties, and it shall benefit, respectively, each of the
Parties, and their respective successors and assigns. This Agreement shall not be assignable by any Party. There are no third party beneficiaries to this Agreement. 

        5.7   Headings. The headings to this Agreement are for convenience only; they form no part of this Agreement and shall not
affect its interpretation. 

        5.8   Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute a
single instrument. 

        5.9   Survival Of Representations And Warranties. Each covenant, agreement, representation and warranty of the Parties under
this Agreement shall survive for one year the execution of this Agreement and the performance of each respective Party's obligations pursuant to this Agreement. 

4

 

        IN
WITNESS WHEREOF, this Agreement is executed on the dates set forth below to be effective as of the Effective Date. 

	 	 	 	 	PURCHASERS:

INFOSONICS CORPORATION
	

Date:	
 	

1/27/2004
	
 	

By:	
 	

/s/  JOSEPH RAM      

	

 	
 	

 	
 	

INFOSONICS MEXICO, INC.
	

Date:	
 	

1/27/2004
	
 	

By:	
 	

/s/  JOSEPH RAM      

	

 	
 	

 	
 	

SELLERS:
	

Date:	
 	

1/27/2004
	
 	

/s/  JOSEPH RAM      
 Joseph Ram, individually
	

Date:	
 	

1/26/04
	
 	

/s/  ABRAHAM ROSLER      
 Abraham Rosler, individually

5

QuickLinks

Exhibit 10.4

STOCK PURCHASE AGREEMENT

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