Document:

Exhibit
10.1

DISTRIBUTION
AGREEMENT

by and between

INFOSONICS
CORPORATION, a Maryland corporation

and

SAMSUNG
ELECTRONICS ARGENTINA S.A.

Effective as of
January 1, 2007

DISTRIBUTION AGREEMENT

THIS AGREEMENT is made and
entered into this 1st day of
January, 2007 by and between Samsung Electronics Argentina S.A., a corporation
organized and existing under the laws of the Argentine Republic, domiciled at
Bouchard 547 – 3 Piso, (1106) Buenos Aires, Argentina (hereinafter referred to
as “SEASA”) and Infosonics Corporation. a
corporation organized and existing under the laws of the E.E.U.U, domiciled at
5880 Pacific Center Blvd, San Diego, CA 92121 (hereinafter referred to as “DISTRIBUTOR”).

WITNESSETH:

WHEREAS, SEASA is engaged, by itself or through affiliated companies, in the
manufacture and sale of hand phones and its accessories, which intends to
market in the TERRITORY hereinafter set forth,

WHEREAS, DISTRIBUTOR is
engaged in the business of importation and distribution of same products and
its accessories trough carries or through such carrier ́s authorized agent in
the TERRITORY and desires to deal in and sell the products and its accessories
in the TERRITORY; and

WHEREAS, SEASA is desirous
of granting to the DISTRIBUTOR the non-exclusive right to distribute the
products in the TERRITORY and the DISTRIBUTOR is willing to accept it.

Now, THEREFORE, in
consideration of the mutual covenants hereunder set forth, the parties hereto
agree as follows:

Article 1. Definitions.

When used in this Agreement,
each of the following terms shall have the meaning attributed to it below.

(a)                     “Affiliate” shall mean any entity that
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with SEASA.

(b)                    “Agreement” means this Agreement, any written
amendment and any exhibits or schedule thereto and all references to “herein”; “hereunder”
or “hereof” shall refer to this entire Agreement.

(c)                     “Notice” shall mean a notice given in
accordance with the terms of Article 17 of this

 1
 

Agreement.

(d)                    “PRODUCTS”, shall mean Held phones and its
accessories as decided by SEASA from time to time.

(e)                     “SEASA” shall have the meaning set forth on the introductory paragraph.
However, if DISTRIBUTOR purchases the PRODUCTS to an Affiliate of SEASA, all
references in Articles 2 to 23 to SEASA will be deemed as if they were referred
to such Affiliate.

(f)                       “SEASA’s Trademarks” shall mean those
trademarks, trade names, slogans, labels, logo and other trade identifying
symbols whether registered or not in the TERRITORY which are developed and used
by SEASA in connection with any of the PRODUCTS to be sold by the DISTRIBUTOR
pursuant to this Agreement.

(g)                    “TERRITORY” shall mean the ARGENTINE
REPUBLIC, URUGUAY REPUBLIC and PARAGUAY REPUBLIC, the product shall be delivery
at the customers in the port, in FOB bases.

Article 2. Distributorship.

2-1                   SEASA hereby grant to DISTRIBUTOR a non-exclusive right to distribute
the PRODUCTS in the TERRITORY during the term of this Agreement and subject to
the provisions and conditions hereinafter set forth.

2-2                   DISTRIBUTOR shall buy and sell in its own name and for its own account
and shall act as independent trader with regard to both SEASA and the customers
of DISTRIBUTOR. Nothing in this Agreement shall authorize DISTRIBUTOR to engage
in transactions in the name of SEASA or in any manner, which may create any
obligations or liabilities on the part of SEASA.

2-3                   This Agreement shall not operate or be construed to create any
exclusive relationship between the parties. SEASA shall have at any time the
right to sell to any other person within the TERRITORY upon such terms and
conditions as are acceptable to SEASA in its sole discretion. DISTRIBUTOR shall
have no right or interest, including third party beneficiary or “most-favored
nation” interest or rights, in any transaction or agreement between SEASA and
any person within the TERRITORY.

 2
 

Article 3. Orders.

3-1                   SEASA shall sell the PRODUCTS to DISTRIBUTOR for resale in the
TERRITORY in accordance with the terms and conditions of each sales contract to
be separately agreed and fixed between the parties provided that, unless agreed
otherwise, this Agreement shall be applicable.

3-2                   No sales contract shall be binding unless and until accepted by SEASA.

3-3                   SEASA shall use its best efforts to accept any reasonable order
regarding the PRODUCTS placed by the DISTRIBUTOR provided that it shall not be
required to accept a DISTRIBUTOR’s order or any part thereof when:

a)                         The PRODUCTS are not available or sufficient
enough to fill the order placed by the DISTRIBUTOR, or all the orders placed by
the DISTRIBUTOR and other customers; or

b)                        SEASA have discontinued the manufacture or
sale of the PRODUCTS ordered at the time the order is received; or

c)                         The DISTRIBUTOR has committed a material
breach under this Agreement.

3-4                   SEASA shall use its best efforts to meet the delivery dates set forth
on the accepted orders. In the event of a shortage of the PRODUCTS, SEASA shall
apportion its available supply among its customers, as it deems convenient.
DISTRIBUTOR may cancel by delivering a written notice to SEASA, any order if
the delivery date has not been met for more than sixty (60) days.

3-5                   Except as set forth on 3-4 above, neither DISTRIBUTOR nor SEASA shall
rescind or amend any order, which has been accepted by SEASA without written
consent of SEASA.

3-6                   DISTRIBUTOR will place orders for the PRODUCTS by way of written or
electronic purchase orders. No order from DISTRIBUTOR is binding on SEASA until
SEASA issues an acknowledgment and acceptance to the DISTRIBUTOR for such
order. SEASA shall have ten (10) business days to accept such order. If SEASA
does not accept in writing within such term, then such order will be deemed as
rejected by SEASA.

3-7                   When placing orders DISTRIBUTOR shall give SEASA a ninety (90) days
notice in advance, with a fixed purchase order for three months plus a
non-binding forecast for the forthcoming two months (i.e. seventh and eighth
months as of the notice). DISTRIBUTOR may increase the quantity of such orders
for the fixed or forecasted months subject to written acceptance by SEASA.

3-8                   All orders will be shipped to DISTRIBUTOR FOB from the respective
Samsung Electronics

 3
 

Co. Ltd. manufacturing or warehouse facility.
All cost of freight, insurance and any other shipping expenses from FOB point,
as well as any special packaging expenses requested by DISTRIBUTOR, shall be
borne by DISTRIBUTOR. In addition, DISTRIBUTOR will be responsible to (i)
obtain all licenses required to import the PRODUCTS into the TERRITORY and (ii)
clear the PRODUCTS through local customs promptly upon arrival at the
TERRITORY, and (iii) pay all customs duties and other charges assessed on such
PRODUCTS in the TERRITORY. Risk of loss will pass to DISTRIBUTOR upon delivery.

Article 4. Independence of
parties

4-1                   It is expressly agreed that the relationship
hereby established between SEASA and the DISTRIBUTOR is that of a supplier and
a purchaser. The DISTRIBUTOR is an independent contractor and does not have
authority to cause SEASA to act in any way, or to represent that SEASA is in
any way responsible for the acts of the DISTRIBUTOR. This Agreement does not
establish a joint venture, agency or partnership between the parties, nor does
it create an employer/employee relationship.

4-2                   SEASA shall not be responsible for the acts
or defaults of the DISTRIBUTOR or its employees or representatives or its
appointed sub-distributors or retailers and the DISTRIBUTOR hereby agrees to
indemnify and to hold SEASA harmless from any and all claims of any nature
whatsoever arising therefrom.

Article 5. Prices and
payment

5-1                   SEASA will sell the PRODUCTS to DISTRIBUTOR
at the reasonable prices SEASA normally sells to its other non-exclusive
distributors from time to time. To that end, SEASA shall provide DISTRIBUTOR
with pricing schedules within 10 business days upon request by DISTRIBUTOR.

5-2                   SEASA, at its sole discretion, may change the
prices of the PRODUCTS provided that such change of prices shall become
effective and applicable to each sales contract to be effected between the
parties as from the date SEASA notifies the DISTRIBUTOR, unless otherwise
specified therein.

5-3                   The DISTRIBUTOR and SEASA will cooperate in
all good faith to establish selling prices for the PRODUCTS at appropriate
levels enough to keep the competitiveness of the PRODUCTS.

5-4                   The DISTRIBUTOR shall cause an irrevocable
and confirmed letter of credit without recourse,

 4
 

available against SEASA’s draft at sight, to be
opened for each sales contract through a leading bank acceptable to SEASA at
least 30 days prior to the date of each shipment of the PRODUCTS. DISTRIBUTOR
will pay all banking and similar charges incurred in connection with any of
these payments.

5-5                   If the DISTRIBUTOR fails to provide such
letter of credit, SEASA shall have the option of reselling the PRODUCTS in any
country, holding the PRODUCTS for the DISTRIBUTOR’s accounts and risk and/or
canceling the contract and claiming for damages caused by the DISTRIBUTOR’s
default.

5-6                   SEASA and DISTRIBUTOR may agree on other
forms of payment, other than the one provided in 5-4 and 5-5 above.

5-7                   All amounts payable by DISTRIBUTOR to SEASA
under this Agreement are exclusive of any tax, levy or similar governmental
charge that may be assessed by any jurisdiction, whether based on gross
revenue, the delivery, possession or use of the PRODUCTS, the execution or
performance of this Agreement or otherwise, except for net income, net worth or
franchise taxes assessed on SEASA in or outside the TERRITORY. If a change in
the laws of the TERRITORY were to occur and such change has an adverse effect
on the amounts payable by DISTRIBUTOR, then the amounts payable by DISTRIBUTOR
shall be readjusted so that SEASA does not suffer a loss as a result of such
change in the law.

Article 6. Risk and Property

6-1                   Risk in the PRODUCTS supplied by SEASA to
DISTRIBUTOR will pass upon delivery FOB. Property in such goods supplied by
SEASA shall pass to the DISTRIBUTOR on payment in full to SEASA of the contract
price therefor.

Article 7. Inspection and
Claim

7-1                   Within one (1) month upon delivery of the
PRODUCTS, the PRODUCTS may be inspected by a DISTRIBUTOR’s qualified agent in
the TERRITORY at the DISTRIBUTOR’s cost and according to SEASA’s standard “quality
warranty”. Should any defects or shortage of the PRODUCTS been found upon
inspection due to its material failure to meet the standards of quality,
DISTRIBUTOR shall give a written notice to SEASA within 10 days upon inspection.
If (i) such written notice of claim for defects or shortages is accompanied by
a proof of damage certified by an authorized surveyor, (ii) such defects or
shortages are acknowledged by SEASA as attributable to the fault of SEASA and
(iii) such defects or shortages are not compensated by

 5
 

insurance; then SEASA shall supply DISTRIBUTOR free
of charge with new PRODUCTS or a new part or parts thereof as the case may be
to replace the defective PRODUCTS or parts or to replace the missing parts,
delivering the same at the port of destination.

7-2                   If DISTRIBUTOR fails to carry out the
inspection mentioned in 7-1 above or fails to notify and/or to forward a claim
within the period specified above, the DISTRIBUTOR should be deemed to have
waived any such claim. However, DISTRIBUTOR shall have the rights set forth in
Article 8, but only regarding defects on workmanship or material of the
PRODUCTS.

7-3                   SEASA shall have no liability for any defects
or shortages in the PRODUCTS that have been caused by improper storage,
warehousing or transport or by neglect, abuse or improper use, maintenance,
installation and repair except when the PRODUCTS are under SEASA’s control.

Article
8. Warranty

8-1                   SEASA warrants in accordance with SEASA’s
standard “quality warranty” that the PRODUCTS sold by it to DISTRIBUTOR are
free from defects in workmanship or material for a period of 12 months for Laser
Printer, from the delivery to
the initial user or such other period as decided by SEASA and notified to
DISTRIBUTOR from time to time.

8-2                   When the PRODUCTS or parts thereof prove to
be defective in workmanship or material, certified by SEASA’s office, SEASA
shall pay the cost o those, or replace those, which are materially defective,
if such defects cannot be repaired or replaced by DISTRIBUTOR, with standard
spare parts to be supplied to DISTRIBUTOR. This warranty does not apply to any
PRODUCTS changed or altered in any way or subjected to misuse, abuse,
negligence, accident or normal wear and tear.

8-3                   Except as hereinabove stated and to the
extend permitted by law, SEASA shall not be liable for any damage or losses
caused by the breach o any warranty, express or implied, including but not
limited to, any implied warranty of merchantability or fitness for a particular
purpose or for any other obligation or liabilities on account of the PRODUCTS
under this Agreement which it may sell to DISTRIBUTOR.

8-4                   It is hereby agreed that SEASA is in no case
liable for indirect or consequential damage, including but not limited to,
damage or injury to person or property or loss of revenue which might be paid,
incurred, or sustained by reason of failure of any part or assembly which may
be replaced in accordance with the terms of this Warranty.

 6
 

Article 9. Promotion and
Advertising

9-1                   The DISTRIBUTOR agrees that it will not, in
promoting and selling the PRODUCTS make any representation or give any warranty
with respect thereto other than those set forth in the catalogues and leaflets
provided by SEASA, and/or the standard terms and conditions of warranty of the
PRODUCTS or, as may otherwise be authorized in writing by SEASA, unless
required by law.

Article 10. Trademark and
other Rights.

10-1             SEASA authorizes DISTRIBUTOR to use
non-exclusively Samsung Trademarks in the TERRITORY during the term of this
Agreement for the sole purpose of the sale and distribution of the PRODUCTS.

10-2             The DISTRIBUTOR accepts and agrees not to use
Samsung Trademarks for any other purpose than to distribute the PRODUCTS and to
use them only in such manner as to preserve at all times all rights of SEASA.

10-3             The DISTRIBUTOR agrees that it will not alter
or remove any of Samsung Trademarks on the PRODUCTS sold under this Agreement.

10-4             SEASA shall have the right of prior review
and approval of any use of Samsung Trademarks by the DISTRIBUTOR.

10-5             The DISTRIBUTOR shall not authorize third
parties except its dealers to use Samsung Trademarks and any such attempted
authorization shall be void.

10-6             SEASA authorizes DISTRIBUTOR to use Samsung
Trademarks in advertisement, promotional literature, catalogues, brochures, and
other printed materials, letterhead, visiting cards, only on the express
condition that in such use explicit reference will be made to its capacity as a
DISTRIBUTOR of the PRODUCTS and that DISTRIBUTOR submits such materials to
SEASA for prior approval. The DISTRIBUTOR shall not use the words “SAMSUNG” or
any altered or shortened form thereof in its own company name.

10-7             The DISTRIBUTOR shall discontinue and cause
its dealers to discontinue the use of the Samsung Trademarks free of
compensation upon termination of this Agreement and thereafter shall not use or
permit to be used the Samsung Trademarks or any similar trademarks, provided,
however, that DISTRIBUTOR and its dealers may sell the PRODUCTS bearing Samsung
Trademarks held by them in stock at the time of termination of this Agreement
for a period of

 7
 

six (6) months following such time and not
thereafter.

10-8             The DISTRIBUTOR recognizes and concedes for
all purpose that the Samsung Trademarks, whether or not registered in the
TERRITORY, are valid and are the exclusive property of SEASA, and that
DISTRIBUTOR’s right to use such Samsung Trademarks arises only out of this
Agreement and is subject to the superior right of SEASA.

10-9             The DISTRIBUTOR agrees that any rights
arising out of its use of Samsung Trademarks shall belong to SEASA and not to
DISTRIBUTOR.

10-10       SEASA shall have the exclusive right at its sole discretion to bring
legal actions in the TERRITORY for trademark infringement with respect to any
of the Samsung Trademarks. The DISTRIBUTOR will assist SEASA in any proceedings
for the protection of any of the Samsung Trademarks when requested by SEASA or
as may be required by local law.

10-11       The DISTRIBUTOR shall not apply for any registration with regard to any
of the Samsung Trademarks in any country of the world including the TERRITORY.

10-12       Any patent, design or copyright embodied in the PRODUCTS shall be the
sole property of SEASA, and DISTRIBUTOR shall not acquire any right to them by
execution of this Agreement or performance thereunder or otherwise and shall
not use any of them after termination of this Agreement.

Article 11. Sub-distributors

11-1             In the event the DISTRIBUTOR wishes to
appoint sub-distributors, it shall submit its proposed agreement to SEASA. Any
such proposed agreements must specifically require the sub-distributor or
retail trader to be bound by the terms of this Agreement. In no event shall any
such sub distributor or retail trader acquire any rights against SEASA and the
DISTRIBUTOR hereby agrees to indemnify and hold SEASA harmless therefrom.

Article 12. Reports

12-1             The DISTRIBUTOR shall discuss with SEASA
certain matters related to its marketing activity when requested by SEASA and
or DISTRIBUTOR deems it necessary, and shall furnish SEASA with adequate
information related to its marketing activities provided that DISTRIBUTOR
retain a right not to disclose certain trade secrets a its discretion.

 8
 

12-2             The DISTRIBUTOR shall promptly bring to the
notice of SEASA any information received by it which is likely to be of
interest, use or benefit to SEASA relating to the marketing of the PRODUCTS in
the TERRITORY.

12-3             The DISTRIBUTOR shall, from time to time,
upon the request of SEASA submit to SEASA reports relating to the
distributorship. Such reports shall be submitted at least quarterly and shall
include information relating to its financial status inclusive of the latest
Balance Sheet and Profit and Loss Statements, total sales, sales by PRODUCTS,
sales by Province within the TERRITORY, percentage of returns by PRODUCTS
category, remaining inventory of the DISTRIBUTOR and the DISTRIBUTOR’s
suggestions and recommendations as to the PRODUCTS and marketing thereof, and
Warranty Service activities.

Article 13. Term of Agreement

13-1             Except, if terminated in accordance to what
is provided in Article 14, this Agreement shall remain in effect for one year,
commencing on Jan 01.2007 and expiring on Jan 1.2008. This Agreement shall
automatically be terminated unless otherwise agree by the parties to this
Agreement.

13-2             All the rights assigned to DISTRIBUTOR by
SEASA in connection with this Agreement shall be reverted upon expiration or
termination of this Agreement.

Article 14. Termination

14-1             Any party shall have the right to terminate
this Agreement, at any time, unconditionally and without cause by giving
written notice to the other party within 30 days in advance.

14-2             SEASA shall have the right to terminate this
Agreement at any time by giving written notice to DISTRIBUTOR of any material
breach of the provisions of this Agreement incurred by DISTRIBUTOR, and with
respect to which it fails to rectify such breach within ten (10) days after the
receipt of a notice in writing from SEASA requiring such rectification.

Examples
of breach by DISTRIBUTOR include but are not limited to the following:

(a)
Failing to pay SEASA owed moneys;

(b)
failing to adequately promote the PRODUCTS; or

(c) unreasonably frequent delay in confirmation of
order and/or opening the letter of credit in accordance with Article 5-4 of
this Agreement.

14-2             Any of the parties to this Agreement shall
have the right to forthwith terminate this Agreement

 9
 

by giving written notice to the other party upon the
occurrence of any of the following events.

a) when any of the parties to this Agreement becomes
insolvent or a petition of bankruptcy or for corporate reorganization or for
any similar relief is filed by or against the other party, or a receiver is
appointed with respect to any of the assets of the other party, or liquidation
proceeding is commenced by or against the other party.

b) when any of the parties to this Agreement assigns
the whole or any substantial part of its business or assets to a third party by
agreement, order of court or otherwise, or ceases to carry on its business.

c) when any of the parties to this Agreement winds
up, either compulsory or voluntarily, or merges into another company, or when
DISTRIBUTOR makes a change in the principal management without the written
consent of the other party.

14-3             In the event of this Agreement being
terminated or expired for any reason whatsoever, the following shall apply:

a) The DISTRIBUTOR shall not be discharged or
released from any debts or liabilities under this Agreement which exist at the
time of the expiration or termination.

b) The DISTRIBUTOR shall not make any financial
demands upon SEASA for compensation for, or refund of, its service performed
under this Agreement or refund of its expenses incurred from facilities and
advertisement and others.

c) The DISTRIBUTOR shall not use any Trademarks or
Trade names belonging to SEASA without written consent of SEASA except for the
sale of its stocks remaining in its hands.

14-4             Upon expiration of this Agreement,
DISTRIBUTOR may sell the PRODUCTS bearing Samsung Trademarks held by
DISTRIBUTOR in stock for a period of six (6) months after the date of
expiration or termination unless agreed upon otherwise. Nevertheless, SEASA
shall have the option, but shall not be obligated, to repurchase from
DISTRIBUTOR any PRODUCTS then in DISTRIBUTOR’s inventory at the original cost
to DISTRIBUTOR. DISTRIBUTOR shall then immediately ship such PRODUCTS to SEASA.

Article 15. Force Majeure

15-1             If the performance of any part of this
Agreement is prevented, restricted or interfered with for

 10
 

any length of time by reason of governmental
restrictions, war, civil commotions, riots, strike, lock out, lack of shipping
space and acts of God such as typhoon, flood, fire or any other similar causes
which are beyond the reasonable control of the parties hereto, the party so
affected, upon giving prompt notice to the other parties, shall be excused from
such delay or failure of performance to the extent of such prevention,
restriction or interference and for such length of time. If such failure
continues for a period of more than six (6) months, either party hereto shall
have the rights to forthwith terminate this Agreement by serving a written
notice to the other party.

Article 16. Secrecy

16-1             During the terms of this Agreement and
thereafter neither DISTRIBUTOR nor SEASA shall disclose or divulge any
information it may acquire in connection with the PRODUCTS, this Agreement, or
performance hereunder.

16-2             It is agreed that each party remains the
owner of its information, and such information can be used by the other party
only for the purpose of performing under this Agreement. The DISTRIBUTOR agrees
to use SEASA ́s information (i) only for purposes herein described, and (ii) to
maintain this commitment until 5 years after this Agreement expires. However,
DISTRIBUTOR shall have no such non-disclosure obligations with respect to any
portion of the received information which is now or which hereafter, through no
act or failure to act on the DISTRIBUTOR ́s part, becomes generally known or
available.

Article 17. Notice

17-1             Any notice, request, consent, offer or demand
required or permitted under this Agreement must be in writing and must be
sufficiently given if delivered in person or sent by registered airmail or
cable confirmed by registered airmail, addressed as follows:

	
  

  	
  SEASA

  	
  DISTRIBUTOR

  
	
  Address: 

  	
  BOUCHARD 547 3°

  	
  5880 Pacific Center Blvd

  
	
   

  	
  CAPITAL FEDERAL

  	
  San Diego, CA 92121

  
	
   

  	
  REPÚBLICA ARGENTINA

  	
  E.E.U.U.

  

 

Article 18. Waiver

18-1             The failure by either party to enforce any of
the term or conditions of this Agreement shall not constitute a waiver of that
party’s right thereafter to enforce that or any other or condition of

 11
 

this Agreement.

Article 19. Rights of Third
Parties to this Agreement. Severability.

19-1             This Agreement and every term and condition
thereof shall inure to the benefit of the parties, and shall be binding upon
any successors to the parties, but neither party may assign this Agreement or
any rights thereunder directly or indirectly, without the prior written consent
of the other party. The nullity that might be determined as to any of the
clauses will not affect the rest of the Agreement which will stand in full
force and effect in any aspect not affected by the nullity determined.

Article 20. Governing Law.

20-1             This Agreement shall be governed by and
construed in accordance with the laws of the Argentine Republic.

20-2             Any dispute, controversy or difference which
may arise between the parties, out of or in relation to or in connection with
this Agreement, or for the breach thereof shall be submitted before the
Ordinary Courts of the City of Buenos Aires.

20-3             This Agreement constitutes the entire
agreement between the parties and supersede all previous agreement,
negotiations and commitments in respect thereto, and shall not be changed or
modified in any manner, except by mutual consent in writing of subsequent date
signed by duly authorized representatives of each party to this Agreement.

Article 21. Amendment

21-1             This Agreement may be amended only by a
written instrument signed by duly authorized representatives of both parties
and expressly stating that it is an amendment to this Amendment.

Article 22. Headings

22-1             Heading
of article and subsections of this Agreement are for convenience only and shall
not be used in construing this Agreement.

 12
 

Article 23. Sales Meeting

23-1             Annual market and sales plans for the
following one year shall be concluded at the end of each year by having a sales
meeting at the place mutually agreed upon.

IN WITNESS WHEREOF, the
parties hereto have caused their duly authorized representatives to execute
this Agreement as of the day and year first above written.

	
  

  	
  SAMSUNG ELECTRONICS

  	
   

  	
  INFOSONICS CORPORATION

  
	
   

  	
  ARGENTINA S.A.

  	
   

  	
   

  
	
   

  	
         /s/ Seung
  Koo Yeo

  	
   

  	
         /s/ Joseph
  Ram

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Mr. Seung Koo Yeo

  	
   

  	
  By: Mr. Joseph Ram

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date: November 17, 2006

  	
   

  	
  Date: December 29, 2006

  	
   

  
						

 

 13Exhibit
10.1

CHANGE OF CONTROL
RETENTION AGREEMENT

This Change of
Control Retention Agreement (“this Agreement”) is made as of the           day
of         , 200_, between Digimarc
Corporation, a Delaware corporation, with its principal offices at Beaverton,
Oregon (hereinafter called the “Company”), and                                     (hereinafter called “Executive”).

It is made with
reference to the following facts:

A.                                   The
Board of Directors of the Company (the “Board”) believes it imperative that the
Company and the Board be able to rely upon Executive to continue in Executive’s
position, and that they be able to receive and rely upon Executive’s advice as
to the best interests of the Company and its shareholders, without concern that
Executive might be distracted or his or her advice affected by the
circumstances described in Section 1.2 below;

B.                                     Executive
is willing to enter into this Agreement for the purposes and on the terms and
conditions described herein;

NOW, THEREFORE,
the parties hereto agree as follows:

1.                                       Definitions.

1.1                                 “Approved
Group” shall mean any employee benefit plan of the Company or of any subsidiary
of the Company, or any person or entity organized, appointed or established by
the Company for or pursuant to the terms of any such plan.

1.2                                 “Effective
Date” shall mean the day preceding the first to occur of the following events
(the “Change of Control Events”):

(a)                                  Any
Person (as defined in Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), other than the Approved Group or a broker, bank,
or trust company holding common stock of the Company for the account of
customers who are not members of a “group” (within the meaning of Section 13(d)
of the Exchange Act), becoming the record or beneficial owner of 50% or more of
any class of the Company’s voting equity securities, as disclosed by the
Company’s stock records or in any other way, including, without limitation, any
filing with the Securities and Exchange Commission or otherwise; or

(b)                                 Upon
the purchase of 50% or more of any class of the Company’s voting equity
securities pursuant to any tender offer or exchange offer for shares of the
Company’s stock, other than one made by the Company or the Approved Group; or

(c)                                  Upon
approval by the shareholders of the Company (or, if later, approval by the
shareholders of a third party) of any merger, consolidation, reorganization or
other transaction providing for the conversion or exchange of more than fifty
percent (50%) of the outstanding shares of the Company’s stock into 

 1
 

 

securities of a third party, or cash, or property, or a combination of
any of the foregoing; or

(d)                                 The
sale of substantially all of the assets of either the Digital Watermarking
Business or the ID Credentials Business.

1.3                                 “Fiscal
Year” shall mean the 12-month period ending on December 31.

1.4                                 “Good
Reason,” when used with reference to a voluntary termination by Executive of
his or her employment with the Company, shall mean:

(a)                                  a
substantial reduction in Executive’s level of duties or responsibilities; provided,
that (i) a change in title or (ii) a change in title or status resulting from
the Company, or any affiliate of the Company by which Executive is then
employed, being a direct or indirect subsidiary of a parent company following a
Change of Control Event, with no corresponding substantial reduction in
Executive’s level of duties and responsibilities, shall not, in and of itself,
constitute Good Reason;

(b)                                 a
material reduction in Executive’s Minimum Base Salary, benefits or total cash
compensation (consisting of base salary and target bonus), unless such
reduction is part of an overall reduction for all employees at the same level
as Executive;

(c)                                  the
Company’s mandatory transfer of Executive to another geographic location that
is more than 35 miles from the location where Executive was employed at the
Effective Date, except for required travel on the Company’s business to an
extent substantially consistent with Executive’s business travel obligations
immediately prior to the Effective Date hereof;

(d)                                 the
failure by the Company to obtain an assumption of the obligations of the
Company to perform this Agreement by any successor to the Company, to the
extent legally required; or

(e)                                  the
repudiation or failure by the Company or its successor to acknowledge (upon
Executive’s written request) or to comply with any of its obligations under
this Agreement.

1.5                                 “Contract
Period” shall mean the period commencing on the Effective Date and ending on
the first (1st)
anniversary of the Effective Date.

1.6                                 “Disability”
shall mean a physical or mental incapacity of Executive which entitles
Executive to commence the receipt of benefits under the long-term disability
plan maintained by the Company.

1.7                                 “Cause,”
when used in connection with the termination of Executive’s employment by the
Company, shall mean (a) the willful engaging by Executive in misconduct which
is significantly injurious to the Company, monetarily or otherwise; (b) any act
by the

 2
 

 

Executive of fraud,
dishonesty, embezzlement, misrepresentation or theft of property of the
Company; (c) Executive’s conviction of or plea of no contest to a felony or any
crime involving moral turpitude; (d) Executive’s breach of this Agreement or
any other agreements with the Company; (e) Executive’s unauthorized disclosure
of the Company’s proprietary or confidential information or breach of any
confidentiality/invention/proprietary information agreement(s) with the
Company; (f) Executive’s violation of the Company’s Code of Ethics (if
applicable), Code of Business Conduct and Ethics or any other employment rule,
code or policy, as such policies currently exist or may be amended or
implemented during Executive’s employment with the Company; (g) Executive’s
failure or refusal to follow the lawful instructions of the Company, if such
failure or refusal continues for a period of five (5) calendar days after the
Company delivers to Executive a written notice stating the instructions that
Executive has failed or refused to follow; (h) the entry by a court of
competent jurisdiction of an order, or the entering into by Executive of a
consent decree, barring Executive from serving as an officer or director of a
public company; or (i) Executive’s failure to meet and sustain an acceptable
level of performance of Executive’s duties and obligations to the Company
(other than by reason of Disability), which failure continues thirty (30) days
after the Company has given written notice thereof to Executive.  For purposes of this definition, no act, or
failure to act, on Executive’s part shall be considered “willful” unless done,
or omitted to be done, by Executive in bad faith and without reasonable belief
that the action or omission was in the best interests of the Company.

1.8                                 “Without
Cause,” when used in connection with the termination of Executive’s employment
by the company, shall mean any termination of employment of Executive by the
Company which is not a termination of employment for Cause or for Disability.

1.9                                 “Termination
Date” shall mean the effective date as provided in this Agreement for the
termination of Executive’s employment.

1.10                           “Minimum
Base Salary” shall mean salary at an annual rate equal to Executive’s annual
rate of salary on the Termination Date.

1.11                           “Current
Compensation” shall mean one-twelfth (1/12th) of the sum of (a) the Minimum Base Salary, plus
(b) the amount paid to Executive with respect to the most recently
completed fiscal year under the Company’s annual incentive bonus cash
compensation program.

1.12                           “Digital
Watermarking Business” is the intellectual property (patents, trade secrets and
know-how), software and related contracts, programs, customer
relationships and other assets concerning: 
(i) technology that allows users to embed a digital code into
audio, images, video and printed documents and wherein such digital code is
imperceptible during normal use but readable by computers and software and
(ii) technology that allows conveying data or enabling access to data
applications or network resources including indicators of permitted uses,
copyright status and/or business terms as it relates to a piece of content.

 3
 

 

1.13                           “ID
Credentials Business” is all assets of the Company not included in the Digital
Watermarking Business.

2.                                       Scope
of Agreement.

2.1                                 General.  This Agreement shall apply with respect to
any termination of employment of Executive which occurs during the Contract
Period.  It shall not apply to any
termination of employment of Executive which occurs other than during the
Contract Period.  Notwithstanding any other provision of this Agreement, any termination
of Executive’s employment shall not be subject to the terms of this Agreement
(and shall not be deemed a termination hereunder) if (a) such termination
occurs in connection with the closing of the sale of substantially all of the
assets of either the Digital Watermarking Business or the ID Credentials
Business, (b) Executive is offered employment by the successor to such
transferred business upon initial terms that would not constitute Good Reason,
and (c) the successor to such transferred business assumes the Company’s
obligations under this Agreement.

2.2                                 Termination.  This Agreement shall terminate on December
31, 2009, if Executive is still in the employ of the Company and a Change of
Control Event has not occurred.  Except
as otherwise provided herein in respect of payments to beneficiaries, this
Agreement shall terminate automatically upon the death of Executive.

3.                                       Termination
of Employment of Executive By the Company During the Contract Period.

3.1                                 General.  During the Contract Period, the Company shall
have the right to terminate Executive’s employment hereunder for Cause, for
Disability or Without Cause upon following the procedures hereinafter
specified.

3.2                                 For
Disability.  Termination of
Executive’s employment for Disability shall become effective on the date that
disability benefits, payable to Executive in an amount equal to at least
sixty-five (65%) percent of Executive’s then Minimum Base Salary commence under
any long-term disability plan maintained by the Company or on such later date
as the Company may specify in a written notice to the Executive.

3.3                                 For
Cause.  Termination of Executive’s
employment for Cause shall become effective five (5) days after a written
notice of intent to terminate Executive’s employment, specifying the
particulars of the conduct of Executive forming the basis for such termination,
is given to Executive by the Board.

3.4                                 Without
Cause.  The Company shall have the
absolute right to terminate Executive’s employment Without Cause at any
time.  Termination of Executive’s
employment Without Cause shall be effective five (5) business days after the
date of the giving to Executive by the Board of a written notice of
termination, specifying that such termination is Without Cause.

 4
 

 

3.5                                 Effect
of Termination.  Upon a termination
of Executive’s employment for Cause, or for Disability as provided in Section
3.2 hereof, Executive shall have no right to receive any compensation or
benefits hereunder.  Upon a termination
of Executive’s employment Without Cause, Executive shall be entitled to receive
the compensation and benefits provided in Section 5 hereof.

4.                                       Termination
of Employment by Executive During Contract Period.  During the Contract Period, the Executive
shall be entitled to terminate his or her employment with the Company.  The Executive shall give the Company written
notice of voluntary termination of employment, which notice need specify only
Executive’s desire to terminate his or her employment and, if such termination
is for Good Reason, set forth in reasonable detail the facts and circumstances
claimed by Executive to constitute Good Reason. 
Any notice by Executive pursuant to this Section shall be effective
thirty (30) days after receipt by the Company of such notice; provided,
that an Executive’s termination of employment shall not be for Good Reason, if
the Company has, within such thirty (30) days period, corrected the
circumstance that would otherwise result in Good Reason for termination.  If such termination is for Good Reason,
Executive shall be entitled to receive the compensation and benefits in Section
5 hereof.  If such termination is for
other than Good Reason, Executive shall have no right to receive any
compensation and benefits hereunder other than Executive’s Minimum Base Salary
and accrued vacation through Executive’s termination date.

5.                                       Benefits
Upon Termination by the Company Without Cause or by Executive for Good Reason.  Upon the termination of the employment of
Executive by the Company pursuant to Section 3.4 or by Executive for Good
Reason pursuant to Section 4 hereof, and if Executive executes and does not
revoke a general release of all claims in a form acceptable to the Company and
substantially similar to Exhibit A attached hereto (the “General
Release”), Executive shall be entitled to receive the following compensation
and benefits:

5.1                                 The
Company shall pay to Executive (a) Minimum Base Salary through the
Termination Date, and (b) for the period commencing on the Termination
Date and continuing until the first anniversary of the Termination Date, a
monthly amount equal to the Current Compensation; provided, however,
that the Company’s obligation hereunder shall be reduced by the amount of any
compensation Executive receives from another source for services rendered
during the period that payments are being made pursuant to this
Section 5.1.  Executive shall
provide notice of all compensation referred to in the preceding sentence to the
Company within seven (7) days of receipt of such compensation.

5.2                                 The
Company shall pay any premiums necessary to continue Executive’s health
insurance coverage under the Company’s health insurance plan pursuant to
Section 4980B(f) of the Internal Revenue Code of 1986, as amended (“COBRA”)
(provided that Executive is eligible for, and timely elects, COBRA continuation
coverage under the Company’s health insurance plan) until the earliest of (a)
eighteen (18) months after the Termination Date, (b) the first date that
Executive is covered under another health insurance plan or program, or (c) the
date on which Executive is no longer entitled to COBRA continuation coverage
under the Company’s health insurance plan.

 5
 

 

5.3                                 The
Company shall pay to Executive an amount equal to the pro rated portion
(based upon the percentage of the current fiscal year represented by the period
through the Termination Date) of the bonus that was paid to Executive with
respect to the most recently completed fiscal year under the Company’s annual
incentive bonus cash compensation program. 
The good faith determination of the Compensation Committee of the
Company’s Board of Directors as to the bonus that would be payable to Executive
pursuant to this Section 5.3 shall be conclusively presumed to be correct.

5.4                                 Notwithstanding
any other provision of this Agreement, if the Company receives confirmation
from the Company’s independent tax counsel or its certified public accounting
firm (the “Tax Advisor”) that any portion of any payment by the Company or a
related entity to the Executive, or any benefit received by Executive, under
this Agreement or otherwise (each a “Payment”) would be considered to be an
“excess parachute payment” within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended, or any successor statute then in effect (the “Code”),
then the Payments (under this Agreement or otherwise) shall be reduced (the
“Reduction”) to the highest amount that, in the opinion of the Tax Advisor, may
be paid to Executive by the Company without having any portion of any Payment
treated as an “excess parachute payment”; provided that the Reduction shall not
apply if, in the opinion of the Tax Advisor, the after-tax value to Executive
of the total Payments prior to the Reduction is greater than the after-tax
value to Executive if the total Payments are determined taking into account the
Reduction.  For purposes of determining
the after-tax value of the Payments, (i) Executive shall be deemed
to pay income taxes at the highest rate of federal income tax and the highest
rate or rates of state and local income taxes in the state and locality of
Executive’s domicile for income tax purposes for the taxable year in which the
Total Payments will be made, provided that the state and local income tax rate
shall be determined assuming that such taxes are fully deductible for federal
income tax purposes, and provided further that any phase-out of itemized
deductions or other items shall be ignored; and (ii) Executive shall be
deemed to pay employment taxes at the applicable rate under Section 3101(b) of
the Code.  The Reduction shall be applied
to the Payments in any manner determined by the Company in its reasonable
discretion.  If the Tax Advisor requests,
Executive and the Company shall obtain, at the Company’s expense, and the Tax
Advisor may rely on, the advice of a firm of recognized executive compensation
consultants as to the reasonableness of any item of compensation to be received
by Executive.  All determinations made by
the Tax Advisor shall be binding upon the parties hereto and all fees and
expenses of the Tax Advisor shall be borne by the Company.

5.5                                 Except
as specifically provided herein, the amount of any compensation or benefits
provided for in this Section 5 shall not be subject to mitigation by Executive
being required to seek other employment or otherwise.

5.6                                 Notwithstanding
anything to the contrary in this Agreement, the Company and Executive intend that the provisions of this Agreement,
and any payments or other benefits under this Agreement, comply with the payout
and other limitations and restrictions imposed under Section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”),
as clarified or modified by guidance from the U.S. Department of Treasury
or the Internal Revenue Service if, and to the extent, Section 409A is otherwise
applicable to this Agreement and such compliance is necessary to avoid any of
the penalties otherwise 

 6
 

 

imposed under Section 409A. 
In this connection, the provisions of this Agreement, and any payments
or other benefits under this Agreement, and the terms of any deferral and other
rights regarding this Agreement, will, unless otherwise determined by the
Company, be deemed modified if and to the extent necessary to comply with the
payout and other limitations and restrictions imposed under Section 409A,
as clarified or supplemented by guidance from the U.S. Department of
Treasury or the Internal Revenue Service, so as to avoid any of the penalties
otherwise imposed under Section 409A.  For example, if Executive is a “specified
employee,” within the meaning of Section 409A, then, to the extent necessary to
avoid penalties under Section 409A, benefit payments under Section 5
shall be delayed until six months after Executive’s Termination Date.  If payments are delayed pursuant to this
Section 5.6, any amount which would have been paid during such six-month
period but for this Section 5.6 shall be accumulated and paid in a lump
sum as soon as administratively practicable after the six-month anniversary of
Executive’s Termination Date.

5.7                                 If
Executive does not properly execute the General Release or if Executive revokes
or attempts to revoke the General Release, Executive will not be entitled to
any of the benefits provided under this Section 5, except those which may be
otherwise required by law.

6.                                       Successors;
Binding Agreement.

6.1                                 As
used in this Agreement, “Company” shall mean the Company as hereinbefore
defined and any successor to its business and/or assets or which otherwise
becomes bound by all the terms and provisions of this Agreement by operation of
law.

6.2                                 This
Agreement is personal to Executive and Executive may not assign or transfer any
part of his or her rights or duties hereunder, or any compensation due to
Executive hereunder, to any other person, except that this Agreement shall
inure to the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, heirs, distributees, devisees,
legatees or beneficiaries.

7.                                       Modification;
Waiver.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing signed by Executive and by
the Chief Executive Officer of the Company or such other director or officer as
may be specifically designated by the Board. 
Waiver by any party of any breach of or failure to comply with any
provision of this Agreement by the other party shall not be construed as, or
constitute, a continuing waiver of such provision, or a waiver of any other
breach of, or failure to comply with, any other provision of this Agreement.

8.                                       Arbitration
of Disputes.

8.1                                 Any
disagreement, dispute, controversy or claim arising out of or relating to this
Agreement or the interpretation or validity hereof shall be settled exclusively
and finally by arbitration.  It is
specifically understood and agreed that any disagreement, dispute or
controversy which cannot be resolved between the parties, including, without
limitation, any matter relating to the interpretation of this Agreement, may be
submitted to arbitration irrespective of the magnitude thereof, the amount in
controversy or whether such

 7
 

 

disagreement, dispute or controversy would otherwise be considered
justiciable or ripe for resolution by a court or arbitral tribunal.

8.2                                 The
arbitration shall be conducted in accordance with the Commercial Arbitration
Rules (the “Arbitration Rules”) of the American Arbitration Association (the
“AAA”).

8.3                                 The
arbitral tribunal shall consist of one arbitrator.  The parties to the arbitration jointly shall
directly appoint such arbitrator within thirty (30) days of initiation of the
arbitration.  If the parties shall fail
to appoint such arbitrator as provided above, such arbitrator shall be
appointed by the AAA as provided in the Arbitration Rules and shall be a person
who (a) maintains his or her principal place of business in the State of
Oregon; and (b) has had substantial experience in business
transactions.  The Company shall pay all
of the fees, if any, and expenses of such arbitrator.

8.4                                 The
arbitration shall be conducted in Portland, Oregon, or in such other city in
the United States of America as the parties to the dispute may designate by
mutual written consent.

8.5                                 At
any oral hearing of evidence in connection with the arbitration, each party
thereto or its legal counsel shall have the right to examine its witnesses and
to cross-examine the witnesses of any opposing party.  No evidence of any witness shall be presented
in written form unless the opposing party or parties shall have the opportunity
to cross-examine such witness, except as the parties to the dispute otherwise
agree in writing or except under extraordinary circumstances where the
interests of justice require a different procedure.

8.6                                 Any
decision or award of the arbitral tribunal shall be final and binding upon the parties
to the arbitration proceeding.  The
parties hereto hereby waive to the extent permitted by law any rights to appeal
or to seek review of such award by any court or tribunal. The parties hereto
agree that the arbitral award may be enforced against the parties to the
arbitration proceeding or their assets wherever they may be found and that a
judgment upon the arbitral award may be entered in any court having
jurisdiction.

8.7                                 Nothing
herein contained shall be deemed to give the arbitral tribunal any authority,
power, or right to alter, change, amend, modify, add to, or subtract from any
of the provisions of this Agreement.

9.                                       Payment
Obligations Absolute.  The Company’s
obligation to pay Executive the amounts provided for hereunder and to make the
arrangements provided for hereunder shall be absolute and unconditional and
shall not be affected by any circumstances, including, without limitation, any
set-off, counterclaim, recoupment, defense or other right which the Company may
have against Executive or anyone else. 
All amounts payable by the Company hereunder shall be paid without
notice or demand.  Except as expressly
provided herein, the Company waives all rights which it may now have or may
hereafter have conferred upon it, by statute or otherwise, to terminate, cancel
or rescind this Agreement in whole or in part. 
Subject to the right of the Company to seek arbitration under Section 8
and recover, pursuant to such arbitration, any payment made hereunder, each and
every payment made hereunder by the

 8
 

 

Company shall be
final and the Company will not seek to recover all or any part of such payment
from Executive or from whomsoever may be entitled thereto, for any reason
whatsoever.

10.                                 Notice.  All notices, requests, demands and other
communications required or permitted to be given by either party to the other
party by this Agreement (including, without limitation, any notice of
termination of employment and any notice under the Arbitration Rules of an
intention to arbitrate) shall be in writing and shall be deemed to have been
duly given when delivered personally or received by certified or registered
mail, return receipt requested, postage prepaid, at the address of the other
party as follows:

If to the Company,
to:

Digimarc Corporation

9405 S.W. Gemini Drive

Beaverton, Oregon 97008

Attn: General Counsel

If to the Executive, to:

 

Either party
hereto may change its address, for purposes of this Section 10, by giving
fifteen (15) days prior notice to the other party hereto.

11.                                 Severability.  If any term or provision of this Agreement or
the application hereof to any person or circumstances shall to any extent be
invalid or unenforceable, the remainder of this Agreement or the application of
such term or provision to persons or circumstances other than those as to which
it is held invalid or unenforceable shall not be affected thereby, and each
term and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

12.                                 Headings.  The headings in this Agreement are inserted
for convenience of reference only and shall not be a part of or control or
affect the meaning of this Agreement.

13.                                 Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed an original.

14.                                 Governing
Law.  This Agreement shall in all
respects be governed by, and construed and enforced in accordance with, the
laws of the State of Oregon.

15.                                 Payroll
and Withholding Taxes.  All payments
to be made or benefits to be provided hereunder by the Company shall be subject
to reduction for any applicable payroll related or withholding taxes.

 9
 

 

16.                                 Entire
Agreement.  This Agreement supersedes
any and all other oral or written agreements heretofore made relating to the
subject matter hereof and constitutes the entire agreement of the parties
relating to the subject matter hereof; provided, that this Agreement
shall not supersede or limit or in any way affect any rights Executive may have
under any other Company employee benefit plan, program or arrangement
(including, without limitation, any pension, life insurance, medical, dental,
health, vacation, accident and disability plans, programs and arrangements).

IN WITNESS
WHEREOF, the parties have executed this Change of Control Retention Agreement
as of the date first above written.

	
   

  	
  DIGIMARC CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 10

 

EXHIBIT A

SETTLEMENT AGREEMENT AND GENERAL RELEASE

This SETTLEMENT
AGREEMENT AND GENERAL RELEASE (this “Agreement”), effective                 ,
200   by and between                  
(“Executive”) and Digimarc Corporation (the “Company”)

RECITAL

A.                                   Executive
and Company are parties to, among other things, a Change of Control Retention
Agreement dated as of             ,
200   (the “Change of Control Retention Agreement”).

B.                                     The
Change of Control Retention Agreement provides, among other things, that if (i)
Company terminates the employment of Executive Without Cause (as defined in the
Change of Control Retention Agreement), or (ii) the Executive resigns his or
her employment for Good Reason (as defined in the Change of Control Retention Agreement)
(each a “Release Condition”), then Executive shall execute this
Agreement in exchange for the right to receive certain payments from Company as
set forth more fully in the Change of Control Retention Agreement.

C.                                     Effective
           , 200_, a
Release Condition has occurred.

AGREEMENT

In consideration
of the foregoing premises, the mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.                                       Settlement
Amount.  Execution of this Agreement
by Executive shall satisfy the condition that Executive execute a full release
of claims as set forth in Section 5 of the Change of Control Retention
Agreement and, upon satisfaction of any other conditions set forth in this
Agreement or in the Change of Control Retention Agreement, Executive shall be
entitled to receive the compensation set forth in Section 5 of the Change
of Control Retention Agreement.

2.                                       Release
of Claims.  Executive irrevocably and
unconditionally releases and forever discharges Company, its affiliates,
successors and assigns, and each of their respective officers, directors,
members, employees, representatives, insurance carriers, attorneys,
subsidiaries, affiliates, representatives, agents, successors, heirs,
executors, administrators and assigns, and all persons acting by, through,
under or in concert with any of them (collectively “Releasees”), of and
from any and all claims, actions, causes of action, suits, debts, charges,
complaints, liabilities, obligations, promises, agreements, controversies,
damages, and expenses (including attorney’s fees and costs actually incurred),
of any nature whatsoever, known or unknown, in law or equity, including,
without limitation of the foregoing general terms, any claims against Company
and Releasees arising from or related to Executive’s employment with 

 1
 

 

Company or the
termination thereof, and any claims arising from any alleged violation by
Company of any federal, state or local statutes, ordinances or common laws,
including, but not limited to, the Age Discrimination in Employment Act.

3.                                       Confidentiality.  Executive agrees that the terms, amount and
fact of settlement shall be kept strictly confidential and promises that
neither Executive nor Executive’s representatives nor agents shall disclose,
either directly or indirectly, any information concerning this settlement (or
the fact of settlement) to anyone, including but not limited to past, present
or future employees of Company, its affiliates, successors or any other
company.

4.                                       Disclaimer
of Liability.  This Agreement does
not constitute and shall not be construed as an admission of liability or
wrongdoing by Company, its agents, employees or successors, with respect to any
claims asserted by Executive, and Company expressly denies that it has done
anything wrong or unlawful.

5.                                       Release
of Unknown Claims.  Executive
represents that Executive is not aware of any claims against Company except for
those claims that are released by this Agreement.  Moreover, the Parties agree and represent
that it is within their contemplation that Executive may have claims against
Company of which, at the time of the execution of this Agreement, they have no
knowledge or suspicion, but that this Agreement extends to claims in any way
based upon, connected with, or related to the matters described in Paragraph 2
above, whether or not known, claimed, or suspected by the Parties.

6.                                       Property.  As a precondition to any settlement payment
in connection with this Agreement, Executive shall return to Company all
property of Company in Executive’s possession.

7.                                       ADEA
Notification. This Agreement contains a release of claims under the Age
Discrimination in Employment Act (the “ADEA”).  By executing this Agreement, Executive
certifies that Executive has knowingly and voluntarily given up any claims that
Executive may have under the ADEA if those claims arose before Executive signed
this Agreement.  Executive further
certifies that the payments described in this Agreement are considerations to
which Executive would not otherwise be entitled without signing this Agreement,
and that these considerations constitute payment in exchange for Executive’s
execution of this Agreement.

Under the ADEA,
Executive may take up to twenty-one (21) days to consider the terms of this
Agreement. Executive has the right to accept in less time by signing and
delivering this Agreement to Company. Executive is urged to use as many of the
twenty-one (21) days as necessary to consider this Agreement and to consult
with Executive’s attorney about it. Executive acknowledges that Executive has
been given at least twenty-one (21) days to consider this Agreement prior to
signing it, and Executive’s signature on this Agreement is completely
voluntary.

Under the ADEA,
Executive may revoke this Agreement within seven (7) days of the date on which
Executive signs the Agreement.  If
Executive revokes, then Executive will not receive any of payments or other
considerations set forth in this Agreement. 
TO BE EFFECTIVE, 

 2
 

 

EXECUTIVE’S REVOCATION
MUST BE IN WRITING AND RETURNED TO DIGIMARC CORPORATION, ATTENTION: GENERAL
COUNSEL, WITHIN SEVEN (7) DAYS OF THE DATE OF EXECUTIVE’S SIGNING OF THIS
AGREEMENT.

8.                                       Governing
Law.  This Agreement shall be
governed by and construed under the laws of the State of Oregon as applied to
agreements among Oregon residents, made and to be performed entirely within the
State of Oregon, without giving effect to conflicts of laws principles.

PLEASE
READ CAREFULLY.  THIS IS A RELEASE OF
CLAIMS YOU MAY HAVE AGAINST DIGIMARC CORPORATION.

	
  EXECUTIVE

  	
  DIGIMARC CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:                 ,
  200_.

  	
  Dated:                    ,
  200_.

  
					

 

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]