Document:

Unassociated Document

    

      Exhibit 10.3

       

      EMPLOYMENT
        AGREEMENT 

       

      This
        Employment Agreement (the “Agreement”) is entered into as of this 8th day of
        April, 2008 (the “Effective Date”) by and between InfoSonics Corporation, a
        Maryland corporation (the “Company”), and Jeffrey Klausner (“Employee”).
        Employee and Company are sometimes referred to individually as a “Party” and
        collectively as the “Parties.” 

       

      In
        consideration of the mutual covenants, promises and agreements herein contained,
        the Company and Employee hereby covenant, promise and agree to and with each
        other as follows: 

       

      1. Employment.
        The
        Company shall employ Employee and Employee shall perform services for and
        on
        behalf of the Company upon the terms and conditions set forth in this Agreement.
        

       

      2. Positions
        and Duties of Employment.
        Employee
        shall be required to devote his full energy, skill and best efforts as required
        to the furtherance of his managerial duties with the Company as the Company's
        Chief Financial Officer. While serving in such capacity, Employee shall have
        the
        responsibilities, duties, obligations, rights, benefits and requisite authority
        as is customary for his position and as may be determined by the Board of
        Directors (the “Board”) of the Company. 

       

      Employee
        understands that his employment as Chief Financial Officer of the Company
        involves a high degree of trust and confidence, that he is employed for the
        purpose of furthering the Company's reputation and improving the Company's
        operations and profitability, and that in executing this Agreement he undertakes
        the obligations set forth herein to accomplish such objectives. Employee
        agrees
        that he shall serve the Company fully, diligently, competently, and to the
        best
        of his ability. Employee certifies that he fully understands his right to
        discuss this Agreement with his attorney, that he has availed himself of
        this
        right to the extent that he desires, that he has carefully read and fully
        understands this entire Agreement, and that he is voluntarily entering into
        this
        Agreement. 

       

      3. Duties.
        Employee
        shall perform the following services for the Company: 

       

      3.1 Employee
        shall serve as Chief Financial Officer of the Company, or in such other position
        as determined by the Board, and in that capacity shall work with the Company
        to
        pursue the Company's plans as directed by the Board. 

       

      3.2 Employee
        shall perform duties with the functions of a Chief Financial Officer, subject
        to
        the direction of the Board of Directors (the “Board”) of the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      3.3 During
        the term of this Agreement, Employee shall devote substantially all of
        Employee's business time to the performance of Employee's duties under this
        Agreement. Without limiting the foregoing, Employee shall perform services
        on
        behalf of the Company for at least 40 hours per week, and Employee shall be
        available at the request of the Company at other times, including weekends
        and
        holidays, to meet the needs and requests of the Company's customers.

       

      3.4 During
        the term of this Agreement, Employee will not engage in any other activities
        or
        undertake any other commitments that conflict with or take priority over
        Employee's responsibilities and obligations to the Company and the Company's
        customers, including without limitation those responsibilities and obligations
        incurred pursuant to this Agreement. 

       

      4. Term.
        Unless
        terminated earlier as provided for in this Agreement, the term of this Agreement
        shall be for four years, commencing on the Effective Date and ending on April
        8,
        2012 (the “Term”). If the employment relationship is terminated by either Party,
        Employee agrees to cooperate with the Company and with the Company's new
        management with respect to the transition of the new management in the
        operations previously performed by Employee. Upon Employee's termination,
        Employee agrees to return to the Company all Company documents (and all copies
        thereof), any other Company property in Employee's possession or control,
        and
        any materials of any kind that contain or embody any proprietary or confidential
        material of the Company. 

       

      5. Compensation. Employee
        shall receive the following as compensation: 

       

      (a) A
        salary
        at an annual rate of $175,000, subject to periodic review by the Board or
        the
        Compensation Committee of the Board, payable in accordance with the Company's
        customary payroll practices. 

       

      (b) At
        the
        discretion of the Board or the Compensation Committee of the Board, a
        performance-based bonus. 

       

      (c) Employer
        shall include Employee, if otherwise eligible, in any profit sharing plan,
        executive stock option plan, pension plan, retirement plan, medical and/or
        hospitalization plan, and/or any and all other benefit plans, except for
        disability and life insurance, which may be placed in effect by Employer
        for the
        benefit of Employer's executives during the Term. Except for the fact that
        Employer at all times shall provide Employee with all or at least a portion
        of
        Employee's medical and/or hospitalization insurance, which shall not be less
        than that afforded to Employer's other executives, nothing in this Agreement
        shall limit (i) Employer's ability to exercise the discretion provided to
        it under any such benefit plan, or (ii) Employer's discretion to adopt, not
        adopt, amend or terminate any such benefit plan at any time. 

       

      
        
          
          

        

        
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      (d) The
        Company shall provide Employee with four weeks vacation leave per each year
        of
        Employee's employment (which vacation leave may carry over and accrue up
        to an
        aggregate of twelve weeks at any time), sick leave, medical and dental insurance
        coverage, and any other benefits consistent with Company plans and policies
        in
        effect for executive Employees from time to time. The Company may modify
        in its
        sole and absolute discretion such benefits from time to time as it considers
        necessary or appropriate, provided that any such modification shall not affect
        or modify Employee's then existing rights with respect to any previously
        accrued
        vacation. 

       

      (e) Any
        payments which the Company shall make to Employee pursuant to this Agreement
        shall be reduced by standard withholding and other applicable payroll
        deductions, including but not limited to federal, state or local income or
        other
        taxes, Social Security and Medicare Taxes, State Unemployment Insurance,
        State
        Disability Insurance, and the like. 

       

      (f) During
        the term of his employment, Employee shall be reimbursed for reasonable expenses
        that are authorized by the Company and that are incurred by Employee for
        the
        benefit of the Company in accordance with the standard reimbursement practices
        of the Company; provided, however, that, with respect to reimbursements,
        if any,
        not otherwise excludible from the Employee’s gross income, to the extent
        required to comply with the provisions of Section 409A of the Internal Revenue
        Code of 1986, as amended (the “Code”), no reimbursement of expenses incurred by
        the Employee during any taxable year shall be made after the last day of
        the
        following taxable year, and the right to reimbursement of such expenses shall
        not be subject to liquidation or exchange for another benefit.  Any direct
        payment or reimbursement of expenses shall be made only upon presentation
        of an
        itemized accounting conforming in form and content to standards prescribed
        by
        the Internal Revenue Service relative to the substantiation of the deductibility
        of business expenses. 

       

      6. Confidentiality.
        Employee
        hereby warrants, covenants and agrees that, without the prior express written
        approval of Employer or unless required by law or court order, Employee shall
        hold in the strictest confidence, and shall not disclose to any person, firm,
        corporation or other entity, any and all of Employer's data, including but
        not
        limited to (a) information, drawings, sketches, plans or other documents
        concerning Employer's business or development plans, customers or suppliers,
        (b) Employer's development, design, construction or sales and marketing
        methods or techniques, or (c) Employer's trade secrets and other “know-how”
or information not of a public nature, regardless of how such information
        came
        to the custody of Employee. For purposes of this Agreement, such information
        shall include, but not be limited to, information, including a formula, pattern,
        compilation, program, device, method, technique or process, that
        (i) derives independent economic value, present or potential, from not
        being generally known to, and not being readily ascertainable by proper means
        by, other persons who can obtain economic value from its disclosure or use,
        and
        (ii) is the subject of efforts that are reasonable under the circumstances
        to maintain its secrecy. The warranty, covenant and agreement set forth in
        this
        paragraph shall not expire, shall survive this Agreement, and shall be binding
        upon Employee without regard to the passage of time or other events.

       

      
        
          
          

        

        
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      7. Non-Compete.
        Employee
        acknowledges and recognizes the highly competitive nature of the Company's
        business and that Employee's duties hereunder justify restricting Employee's
        further employment following any termination of employment. The Employee
        agrees
        that so long as the Employee is employed by the Company, and (i) for a
        period of two years following the termination of this Agreement, Employee,
        except when acting at the request of the Company on behalf of or for the
        benefit
        of the Company, will not induce customers, agents or other sources of
        distribution of the Company's business under contract or doing business with
        the
        Company to terminate, reduce, alter or divert business with or from the Company,
        and (ii) for a period of one year following the termination of this
        Agreement, Employee shall not, directly or indirectly, either as a principal,
        agent, employee, employer, consultant, partner, member or manager of a limited
        liability company, shareholder of a company that does not have securities
        registered under the Securities Exchange Act of 1934 (the “1934 Act”), or
        shareholder in excess of one percent of a company that has securities registered
        under the 1934 Act, corporate officer or director, or in any other individual
        or
        representative capacity, engage or otherwise participate in any manner or
        fashion in any business that is in competition in any manner whatsoever with
        the
        business activities of Employer, in or about any market in which Employer
        has,
        or has publicly announced a plan for doing business. Employee further covenants
        and agrees that the restrictive covenant set forth in this paragraph is
        reasonable as to duration, terms, and geographical area and that the same
        protects the legitimate interests of Employer, imposes no undue hardship
        on
        Employee, and is not injurious to the public. The covenant set forth under
        (ii) above shall not apply if Employee's employment is terminated within
        twelve months of a Change in Control as defined in of this Agreement. Ownership
        by Employee, for investment purposes only, of less than one percent of any
        class
        of securities of a corporation if said securities are listed on a national
        securities exchange or registered under the 1934 Act shall not constitute
        a
        breach of the covenant set forth under (ii) above. It is the desire and
        intent of the Parties that the provisions of this paragraph be enforced to
        the
        fullest extent permissible under the laws and public policies applied in
        each
        jurisdiction in which enforcement is sought. Accordingly, if any particular
        portion of paragraph shall be adjudicated to be invalid or unenforceable,
        this
        paragraph shall be deemed amended to apply in the broadest allowable manner
        and
        to delete therefrom the portion adjudicated to be invalid or unenforceable,
        such
        amendment and deletion to apply only with respect to the operation of paragraph
        in the particular jurisdiction in which that adjudication is made. 

       

      
        
          
          

        

        
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      8. Termination.

       

      (a) If
        Employee's employment is terminated by the Company without Cause (as defined
        below), or if Employee terminates his employment for Reasonable Basis (as
        defined below), then the Company shall, in exchange for Employee's execution
        within 45 days of the termination date of a general release and waiver of
        claims
        against the Company as of the termination date in a form reasonably acceptable
        to the Company, continue to pay as severance Employee's salary for
        18 months or one-half the remaining term of the Agreement, whichever is
        greater. Such payments shall be made in accordance with the Company's customary
        payroll practices and shall be subject to applicable withholding and payroll
        deductions. Each such payment shall be treated as a separate payment for
        purposes of Section 409A of the Code. In the event of any such termination
        set
        forth in this section 8(a), Employee will not be entitled to any additional
        compensation or benefits beyond what is provided in the first sentence of
        this
        section 8(a). 

       

      (i) For
        purposes of this Agreement, “Cause” shall mean that the Board, acting in good
        faith based upon the information then known to the Company, determines that
        Employee has engaged in or committed any of the following: willful misconduct,
        gross negligence, theft, fraud, or other illegal conduct; refusal or
        unwillingness to perform Employee's duties; performance by Employee of
        Employee's duties determined by the Board to be inadequate in a material
        respect; breach of any applicable non-competition, confidentiality or other
        proprietary information or inventions agreement between Employee and the
        Company; inappropriate conflict of interest; insubordination; failure to
        follow
        the directions of the Board or any committee thereof; or any other material
        breach of this Agreement. Indictment or conviction of any felony, or any
        entry
        of a plea of nolo contendre, under the laws of the United States or any State
        shall also be considered “Cause” hereunder. “Cause” shall be specified in a
        notice of termination to be delivered by the Company no later than the date
        as
        of which termination is effective. 

       

      (ii) For
        purposes of this Agreement, “Reasonable Basis” shall mean (A) a material
        breach of this Agreement by the Company, provided that Employee shall have
        first
        given written notice of such default to the Company and if within thirty
        days
        after receipt of such notice, the Company has not cured such default; or
        (B) termination of Employee's employment by the Company without Cause
        during the term hereof; or (C) reduce Employee's job from Chief Financial
        Officer to a lesser position and employ another individual as, or to perform
        the
        functions of, Chief Financial Officer; or (D) a reduction in Employee's
        salary, except to the extent that a majority of the other executive officers
        of
        the Company incur reductions of salary that average no less than the percentage
        reduction incurred by Employee; or (E) termination of the Employee's
        employment by the Employee within 12 months after a “Change Of Control,”
with Change Of Control being defined as follows: 

       

      
        
          
          

        

        
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      “Change
        in Control” shall mean any of the following: 

       

      (1) any
        consolidation or merger of Employer in which Employer is not the continuing
        or
        surviving corporation, other than a merger of Employer in which the holders
        of
        Employer common stock immediately prior to the merger own a majority of the
        voting common stock of the surviving corporation immediately after the merger;
        

       

      (2) any
        sale,
        lease, exchange or other transfer(in one transaction or a series of related
        transactions)of all or substantially all the assets of Employer; 

       

      (3) any
        approval by the stockholders of Employer of any plan or proposal for the
        liquidation or dissolution of Employer; 

       

      (4) the
        acquisition by any person or entity, or any group of persons and/or entities
        of
        a majority of the stock entitled to elect a majority of the directors of
        the
        Company; or 

       

      (5) subject
        to applicable law, in a Chapter 11 bankruptcy proceeding, the appointment
        of a
        trustee or the conversion of a case involving Employer to a case under a
        Chapter
        7 bankruptcy proceeding. 

       

      (b) In
        the
        event that Employee's employment with the Company is terminated for Cause,
        by
        reason of Employee's death or disability, or due to Employee's resignation
        or
        voluntary termination (other than for Reasonable Basis), then all compensation
        and benefits will cease as of the effective date of such termination, and
        Employee shall receive no severance benefits, or any other compensation;
        provided that Employee shall be entitled to receive all compensation earned
        and
        all benefits and reimbursements due through the effective date of termination.
        

       

      (c) Employee
        agrees that the payments contemplated by this Agreement shall constitute
        the
        exclusive and sole remedy for any termination of employment, and Employee
        covenants not to assert or pursue any other remedies, at law or in equity,
        with
        respect to any termination of employment. 

       

      (d) Any
        party
        terminating this Agreement shall give prompt written notice (“Notice of
        Termination”) to the other party hereto advising such other party of the
        termination of this Agreement stating in reasonable detail the basis for
        such
        termination. The Notice of Termination shall indicate whether termination
        is
        being made for Cause (if Employer has terminated the Agreement) or for
        Reasonable Basis (if the Employee has terminated the Agreement). 

       

      
        
          
          

        

        
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      (e) Notwithstanding
        anything herein to the contrary, this Agreement is intended to be interpreted
        and operated to the extent possible so that the payments set forth herein
        either
        shall be exempt from the requirements of Section 409A of the Code or shall
        comply with the requirements of such provision; provided however that in
        no
        event shall the Company be liable to the Employee for or with respect to
        any
        taxes, penalties or interest which may be imposed upon the Employee pursuant
        to
        Section 409A.  To the extent that any amount payable pursuant to this
        Agreement constitutes a “deferral of compensation” subject to Section 409A (a
“409A Payment”), then, if on the date of the Employee’s “separation from
        service,” as such term is defined in Treas. Reg. Section 1.409A-1(h)(1), from
        the Company (his “Separation from Service”), the Employee is a “specified
        employee,” as such term is defined in Treas. Reg. Section 1.409-1(i), as
        determined from time to time by the Company, then such 409A Payment shall
        not be
        made to the Employee earlier than the earlier of (i) six (6) months after
        the
        Employee’s Separation from Service; or (ii) the date of his
        death.  The 409A Payments under this Agreement that would otherwise be
        made during such period shall be aggregated and paid in one lump sum, without
        interest, on the first business day following the end of the six (6) month
        period or following the date of the Employee’s death, whichever is earlier, and
        the balance of the 409A Payments, if any, shall be paid in accordance with
        the
        applicable payment schedule provided in this Section 8.  The Employee
        hereby acknowledges that he has been advised to seek and has sought the advice
        of a tax advisor with respect to the tax consequences to the Employee of
        all
        payments pursuant to this Agreement, including any adverse tax consequences
        or
        penalty taxes under Code Section 409A and applicable State tax
        law.  Employee hereby agrees to bear the entire risk of any such
        adverse federal and State tax consequences and penalty taxes in the event
        any
        payment pursuant to this Agreement is deemed to be subject to Code Section
        409A,
        and that no representations have been made to the Employee relating to the
        tax
        treatment of any payment pursuant to this Agreement under Code Section 409A
        and
        the corresponding provisions of any applicable State income tax laws. If
        payments under this Section 8 constitute 409A Payments, references within
        this
        Section 8 to termination of employment shall mean Employee's "separation
        from
        service" as defined in Treas. Reg. Section 1.409A-1(h), including the default
        presumptions thereunder. 

       

      9. Remedies.
        If there
        is a breach or threatened breach of any provision of Section 6 or
        Section 7 of this Agreement, the Company will suffer irreparable harm and
        shall be entitled to an injunction restraining Employee from such breach.
        Nothing herein shall be construed as prohibiting the Company from pursuing
        any
        other remedies for such breach or threatened breach. 

       

      10. Severability.
        It is
        the clear intention of the Parties to this Agreement that no term, provision
        or
        clause of this Agreement shall be deemed to be invalid, illegal or unenforceable
        in any respect, unless such term, provision or clause cannot be otherwise
        construed, interpreted, or modified to give effect to the intent of the Parties
        and to be valid, legal or enforceable. The Parties specifically charge the
        trier
        of fact to give effect to the intent of the Parties, even if in doing so,
        information of a specific provision of this Agreement is required consistent
        with the foregoing stated intent. In the event that such a term, provision,
        or
        clause cannot be so construed, interpreted or modified, the validity, legality
        and enforceability of the remaining provisions contained herein and other
        application(s) thereof shall not in any way be affected or impaired thereby
        and
        shall remain in full force and effect. 

       

      
        
          
          

        

        
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      11. Waiver
        of Breach.
        The
        waiver by the Company or Employee of the breach of any provision of this
        Agreement by the other Party shall not operate or be construed as a waiver
        of
        any subsequent breach by that Party. 

       

      12. Entire
        Agreement.
        This
        document contains the entire agreement between the Parties and supersedes
        all
        prior oral or written agreements, if any, concerning the subject matter hereof
        or otherwise concerning Employee's employment by Employer (except for options
        to
        purchase shares of Employer's restricted stock previously granted to Employee).
        This Agreement may not be changed orally, but only by agreement in writing
        signed by the Parties. 

       

      13. Governing
        Law.
        This
        Agreement, its validity, interpretation and enforcement, shall be governed
        by
        the laws of the State of Maryland, excluding conflict of laws principles.
        Employee hereby expressly consents to personal jurisdiction in the state
        and
        federal courts located in San Diego, California for any lawsuit filed there
        against him by the Company arising from or relating to this Agreement.

       

      14. Notices.
        Any
        notice pursuant to this Agreement shall be validly given or served if that
        notice is made in writing and delivered personally or sent by certified mail
        or
        registered, return receipt requested, postage prepaid, to the following
        addresses: 

      

        
          	
                  If
                    to Company:

                	
                   

                	
                  InfoSonics
                    Corporation

                  4350
                    Executive Drive,
Suite 100, San Diego,
CA 92121

                  Attention:
                    Chief
Executive Officer

                
	 	 	 
	
                  If
                    to Employee:

                	
                   

                	
                  To
                    the address for
Employee set forth below
his
                    signature.

                

        

      

       

      All
        notices so given shall be deemed effective upon personal delivery or, if
        sent by
        certified or registered mail, five business days after date of mailing. Either
        party, by notice so given, may change the address to which his or its future
        notices shall be sent. 

       

      15. Assignment
        and Binding Effect.
        This
        Agreement shall be binding upon Employee and the Company and shall benefit
        the
        Company and its successors and assigns. This Agreement shall not be assignable
        by Employee. 

       

      
        
          
          

        

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

       

      17. Construction.
        Employee
        represents he has (a) read and completely understands this Agreement and
        (b) had an opportunity to consult with such legal and other advisers as he
        has desired in connection with this Agreement. This Agreement shall not be
        construed against any one of the Parties. 

       

      18. Insurance.
        The
        Company is to maintain directors' and officers' insurance in an amount
        determined reasonably by the Board of Directors of the Company. 

       

      IN
        WITNESS WHEREOF, the parties have caused this Agreement to be executed the
        day
        and year first above written. 

       

      
        	
                EMPLOYEE

              	
              	
                INFOSONICS
                  CORPORATION

              
	 	 	 
	 	 	 
	
                Jeffrey
                  Klausner, Individually

              	
              	
                Joseph
                  Ram, Chief Executive Officer

              
	 	 	 
	
                Address:

              	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                QuickLinks

              	 	 

      

       

      
        
          
          

        

        
          9Unassociated Document

    
      Exhibit 10.4

       

      EMPLOYMENT
        AGREEMENT 

       

      This
        Employment Agreement (the “Agreement”) is entered into as of this 8th day of
        April, 2008 (the “Effective Date”) by and between InfoSonics Corporation, a
        Maryland corporation (the “Company”), and Abraham Rosler (“Employee”). Employee
        and Company are sometimes referred to individually as a “Party” and collectively
        as the “Parties.”

       

      In
        consideration of the mutual covenants, promises and agreements herein contained,
        the Company and Employee hereby covenant, promise and agree to and with each
        other as follows: 

       

      1. Employment.
        The
        Company shall employ Employee and Employee shall perform services for and
        on
        behalf of the Company upon the terms and conditions set forth in this Agreement.
        

       

      2. Positions
        and Duties of Employment.
        Employee
        shall be required to devote his full energy, skill and best efforts as required
        to the furtherance of his managerial duties with the Company as the Company's
        Executive Vice President. While serving in such capacity(ies), Employee shall
        have the responsibilities, duties, obligations, rights, benefits and requisite
        authority as is customary for his position and as may be determined by the
        Board
        of Directors (the “Board”) of the Company. 

       

      Employee
        understands that his employment as Executive Vice President of the Company
        involves a high degree of trust and confidence that he is employed for the
        purpose of furthering the Company's reputation and improving the Company's
        operations and profitability, and that in executing this Agreement he undertakes
        the obligations set forth herein to accomplish such objectives. Employee
        agrees
        that he shall serve the Company fully, diligently, competently, and to the
        best
        of his ability. Employee certifies that he fully understands his right to
        discuss this Agreement with his attorney, that he has availed himself of
        this
        right to the extent that he desires, that he has carefully read and fully
        understands this entire Agreement, and that he is voluntarily entering into
        this
        Agreement. 

       

      3. Duties.
        Employee
        shall perform the following services for the Company: 

       

      3.1 Employee
        shall serve as Executive Vice President of the Company, or in such other
        position as determined by the Board, and in that capacity shall work with
        the
        Company to pursue the Company's plans as directed by the Board. 

       

      3.2 Employee
        shall perform duties with the functions of a Executive Vice President, subject
        to the direction of the Board Of Directors (the “Board”) of the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.3 During
        the term of this Agreement, Employee shall devote substantially all of
        Employee's business time to the performance of Employee's duties under this
        Agreement. Without limiting the foregoing, Employee shall perform services
        on
        behalf of the Company for at least 40 hours per week, and Employee shall be
        available at the request of the Company at other times, including weekends
        and
        holidays, to meet the needs and requests of the Company's customers.

       

      3.4 During
        the term of this Agreement, Employee will not engage in any other activities
        or
        undertake any other commitments that conflict with or take priority over
        Employee's responsibilities and obligations to the Company and the Company's
        customers, including without limitation those responsibilities and obligations
        incurred pursuant to this Agreement. 

       

      4. Term.
        Unless
        terminated earlier as provided for in this Agreement, the term of this Agreement
        shall be for four years, commencing on the Effective Date and ending on April
        8,
        2012 (the “Term”). If the employment relationship is terminated by either Party,
        Employee agrees to cooperate with the Company and with the Company's new
        management with respect to the transition of the new management in the
        operations previously performed by Employee. Upon Employee's termination,
        Employee agrees to return to the Company all Company documents (and all copies
        thereof), any other Company property in Employee's possession or control,
        and
        any materials of any kind that contain or embody any proprietary or confidential
        material of the Company. 

       

      5. Compensation.
        Employee
        shall receive the following as compensation: 

       

      (a) A
        salary
        at an annual rate of $150,000, subject to periodic review by the Board or
        the
        Compensation Committee of the Board, payable in accordance with the Company's
        customary payroll practices. 

       

      (b) At
        the
        discretion of the Board or the Compensation Committee of the Board, a
        performance-based bonus. 

       

      (c) Employer
        shall include Employee, if otherwise eligible, in any profit sharing plan,
        executive stock option plan, pension plan, retirement plan, medical and/or
        hospitalization plan, and/or any and all other benefit plans, except for
        disability and life insurance, which may be placed in effect by Employer
        for the
        benefit of Employer's executives during the Term. Except for the fact that
        Employer at all times shall provide Employee with all or at least a portion
        of
        Employee's medical and/or hospitalization insurance, which shall not be less
        than that afforded to Employer's other executives, nothing in this Agreement
        shall limit (i) Employer's ability to exercise the discretion provided to
        it under any such benefit plan, or (ii) Employer's discretion to adopt, not
        adopt, amend or terminate any such benefit plan at any time. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d) The
        Company shall provide Employee with four weeks vacation leave per each year
        of
        Employee's employment (which vacation leave may carry over and accrue up
        to an
        aggregate of twelve weeks at any time), sick leave, medical and dental insurance
        coverage, and any other benefits consistent with Company plans and policies
        in
        effect for executive Employees from time to time. The Company may modify
        in its
        sole and absolute discretion such benefits from time to time as it considers
        necessary or appropriate, provided that any such modification shall not affect
        or modify Employee's then existing rights with respect to any previously
        accrued
        vacation. 

       

      (e) Any
        payments which the Company shall make to Employee pursuant to this Agreement
        shall be reduced by standard withholding and other applicable payroll
        deductions, including but not limited to federal, state or local income or
        other
        taxes, Social Security and Medicare Taxes, State Unemployment Insurance,
        State
        Disability Insurance, and the like. 

       

      (f) During
        the term of his employment, Employee shall be reimbursed for reasonable expenses
        that are authorized by the Company and that are incurred by Employee for
        the
        benefit of the Company in accordance with the standard reimbursement practices
        of the Company; provided, however, that, with respect to reimbursements,
        if any,
        not otherwise excludible from the Employee’s gross income, to the extent
        required to comply with the provisions of Section 409A of the Internal Revenue
        Code of 1986, as amended (the “Code”), no reimbursement of expenses incurred by
        the Employee during any taxable year shall be made after the last day of
        the
        following taxable year, and the right to reimbursement of such expenses shall
        not be subject to liquidation or exchange for another benefit.  Any direct
        payment or reimbursement of expenses shall be made only upon presentation
        of an
        itemized accounting conforming in form and content to standards prescribed
        by
        the Internal Revenue Service relative to the substantiation of the deductibility
        of business expenses. 

       

      6. Confidentiality.
        Employee
        hereby warrants, covenants and agrees that, without the prior express written
        approval of Employer or unless required by law or court order, Employee shall
        hold in the strictest confidence, and shall not disclose to any person, firm,
        corporation or other entity, any and all of Employer's data, including but
        not
        limited to (a) information, drawings, sketches, plans or other documents
        concerning Employer's business or development plans, customers or suppliers,
        (b) Employer's development, design, construction or sales and marketing
        methods or techniques, or (c) Employer's trade secrets and other “know-how”
or information not of a public nature, regardless of how such information
        came
        to the custody of Employee. For purposes of this Agreement, such information
        shall include, but not be limited to, information, including a formula, pattern,
        compilation, program, device, method, technique or process, that
        (i) derives independent economic value, present or potential, from not
        being generally known to, and not being readily ascertainable by proper means
        by, other persons who can obtain economic value from its disclosure or use,
        and
        (ii) is the subject of efforts that are reasonable under the circumstances
        to maintain its secrecy. The warranty, covenant and agreement set forth in
        this
        paragraph shall not expire, shall survive this Agreement, and shall be binding
        upon Employee without regard to the passage of time or other events.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7. Non-Compete.
        Employee
        acknowledges and recognizes the highly competitive nature of the Company's
        business and that Employee's duties hereunder justify restricting Employee's
        further employment following any termination of employment. The Employee
        agrees
        that so long as the Employee is employed by the Company, and (i) for a
        period of two years following the termination of this Agreement, Employee,
        except when acting at the request of the Company on behalf of or for the
        benefit
        of the Company, will not induce customers, agents or other sources of
        distribution of the Company's business under contract or doing business with
        the
        Company to terminate, reduce, alter or divert business with or from the Company,
        and (ii) for a period of one year following the termination of this
        Agreement, Employee shall not, directly or indirectly, either as a principal,
        agent, employee, employer, consultant, partner, member or manager of a limited
        liability company, shareholder of a company that does not have securities
        registered under the Securities Exchange Act of 1934 (the “1934 Act”), or
        shareholder in excess of one percent of a company that has securities registered
        under the 1934 Act, corporate officer or director, or in any other individual
        or
        representative capacity, engage or otherwise participate in any manner or
        fashion in any business that is in competition in any manner whatsoever with
        the
        business activities of Employer, in or about any market in which Employer
        has,
        or has publicly announced a plan for doing business. Employee further covenants
        and agrees that the restrictive covenant set forth in this paragraph is
        reasonable as to duration, terms, and geographical area and that the same
        protects the legitimate interests of Employer, imposes no undue hardship
        on
        Employee, and is not injurious to the public. The covenant set forth under
        (ii) above shall not apply if Employee's employment is terminated within
        twelve months of a Change in Control as defined in of this Agreement. Ownership
        by Employee, for investment purposes only, of less than one percent of any
        class
        of securities of a corporation if said securities are listed on a national
        securities exchange or registered under the 1934 Act shall not constitute
        a
        breach of the covenant set forth under (ii) above. It is the desire and
        intent of the Parties that the provisions of this paragraph be enforced to
        the
        fullest extent permissible under the laws and public policies applied in
        each
        jurisdiction in which enforcement is sought. Accordingly, if any particular
        portion of paragraph shall be adjudicated to be invalid or unenforceable,
        this
        paragraph shall be deemed amended to apply in the broadest allowable manner
        and
        to delete therefrom the portion adjudicated to be invalid or unenforceable,
        such
        amendment and deletion to apply only with respect to the operation of paragraph
        in the particular jurisdiction in which that adjudication is made.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8. Termination.

       

      
        	 	
                (a)

              	
                If
                  Employee's employment is terminated by the Company without Cause
                  (as
                  defined below), or if Employee terminates his employment for Reasonable
                  Basis (as defined below), then the Company shall, in exchange for
                  Employee's execution within 45 days of the termination date of
                  a general
                  release and waiver of claims against the Company as of the termination
                  date in a form reasonably acceptable to the Company, continue to
                  pay as
                  severance Employee's salary for 18 months or one-half the remaining
                  term of the Agreement, whichever is greater. Such payments shall
                  be made
                  in accordance with the Company's customary payroll practices and
                  shall be
                  subject to applicable withholding and payroll deductions. Each
                  such
                  payment shall be treated as a separate payment for purposes of
                  Section
                  409A of the Code. In the event of any such termination set forth
                  in this
                  section 8(a), Employee will not be entitled to any additional
                  compensation or benefits beyond what is provided in the first sentence
                  of
                  this section 8(a). 

              

      

       

      (i) For
        purposes of this Agreement, “Cause” shall mean that the Board, acting in good
        faith based upon the information then known to the Company, determines that
        Employee has engaged in or committed any of the following: willful misconduct,
        gross negligence, theft, fraud, or other illegal conduct; refusal or
        unwillingness to perform Employee's duties; performance by Employee of
        Employee's duties determined by the Board to be inadequate in a material
        respect; breach of any applicable non-competition, confidentiality or other
        proprietary information or inventions agreement between Employee and the
        Company; inappropriate conflict of interest; insubordination; failure to
        follow
        the directions of the Board or any committee thereof; or any other material
        breach of this Agreement. Indictment or conviction of any felony, or any
        entry
        of a plea of nolo contendre, under the laws of the United States or any State
        shall also be considered “Cause” hereunder. “Cause” shall be specified in a
        notice of termination to be delivered by the Company no later than the date
        as
        of which termination is effective. 

       

      (ii) For
        purposes of this Agreement, “Reasonable Basis” shall mean (A) a material
        breach of this Agreement by the Company, provided that Employee shall have
        first
        given written notice of such default to the Company and if within thirty
        days
        after receipt of such notice, the Company has not cured such default; or
        (B) termination of Employee's employment by the Company without Cause
        during the term hereof; or (C) a reduction in Employee's salary, except to
        the extent that a majority of the other executive officers of the Company
incur
        reductions in salary that average no less than the percentage reduction incurred
        by Employee; or (D) termination of the Employee's employment by the
        Employee within 12 months after a “Change Of Control,” with Change Of
        Control being defined as follows: 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Change
        in Control” shall mean any of the following: 

       

      (1) any
        consolidation or merger of Employer in which Employer is not the continuing
        or
        surviving corporation, other than a merger of Employer in which the holders
        of
        Employer common stock immediately prior to the merger own a majority of the
        voting common stock of the surviving corporation immediately after the merger;
        

       

      (2) any
        sale,
        lease, exchange or other transfer(in one transaction or a series of related
        transactions)of all or substantially all the assets of Employer; 

       

      (3) any
        approval by the stockholders of Employer of any plan or proposal for the
        liquidation or dissolution of Employer; 

       

      (4) the
        acquisition by any person or entity, or any group of persons and/or entities
        of
        a majority of the stock entitled to elect a majority of the directors of
        the
        Company; or 

       

      (5) subject
        to applicable law, in a Chapter 11 bankruptcy proceeding, the appointment
        of a
        trustee or the conversion of a case involving Employer to a case under a
        Chapter
        7 bankruptcy proceeding. 

       

      (b) In
        the
        event that Employee's employment with the Company is terminated for Cause,
        by
        reason of Employee's death or disability, or due to Employee's resignation
        or
        voluntary termination (other than for Reasonable Basis), then all compensation
        and benefits will cease as of the effective date of such termination, and
        Employee shall receive no severance benefits, or any other compensation;
        provided that Employee shall be entitled to receive all compensation earned
        and
        all benefits and reimbursements due through the effective date of termination.
        

       

      (c) Employee
        agrees that the payments contemplated by this Agreement shall constitute
        the
        exclusive and sole remedy for any termination of employment, and Employee
        covenants not to assert or pursue any other remedies, at law or in equity,
        with
        respect to any termination of employment. 

       

      (d) Any
        party
        terminating this Agreement shall give prompt written notice (“Notice of
        Termination”) to the other party hereto advising such other party of the
        termination of this Agreement stating in reasonable detail the basis for
        such
        termination. The Notice of Termination shall indicate whether termination
        is
        being made for Cause (if Employer has terminated the Agreement) or for
        Reasonable Basis (if the Employee has terminated the Agreement).

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e) Notwithstanding
        anything herein to the contrary, this Agreement is intended to be interpreted
        and operated to the extent possible so that the payments set forth herein
        either
        shall be exempt from the requirements of Section 409A of the Code or shall
        comply with the requirements of such provision; provided however that in
        no
        event shall the Company be liable to the Employee for or with respect to
        any
        taxes, penalties or interest which may be imposed upon the Employee pursuant
        to
        Section 409A.  To the extent that any amount payable pursuant to this
        Agreement constitutes a “deferral of compensation” subject to Section 409A (a
“409A Payment”), then, if on the date of the Employee’s “separation from
        service,” as such term is defined in Treas. Reg. Section 1.409A-1(h)(1), from
        the Company (his “Separation from Service”), the Employee is a “specified
        employee,” as such term is defined in Treas. Reg. Section 1.409-1(i), as
        determined from time to time by the Company, then such 409A Payment shall
        not be
        made to the Employee earlier than the earlier of (i) six (6) months after
        the
        Employee’s Separation from Service; or (ii) the date of his
        death.  The 409A Payments under this Agreement that would otherwise be
        made during such period shall be aggregated and paid in one lump sum, without
        interest, on the first business day following the end of the six (6) month
        period or following the date of the Employee’s death, whichever is earlier, and
        the balance of the 409A Payments, if any, shall be paid in accordance with
        the
        applicable payment schedule provided in this Section 8.  The Employee
        hereby acknowledges that he has been advised to seek and has sought the advice
        of a tax advisor with respect to the tax consequences to the Employee of
        all
        payments pursuant to this Agreement, including any adverse tax consequences
        or
        penalty taxes under Code Section 409A and applicable State tax
        law.  Employee hereby agrees to bear the entire risk of any such
        adverse federal and State tax consequences and penalty taxes in the event
        any
        payment pursuant to this Agreement is deemed to be subject to Code Section
        409A,
        and that no representations have been made to the Employee relating to the
        tax
        treatment of any payment pursuant to this Agreement under Code Section 409A
        and
        the corresponding provisions of any applicable State income tax laws. If
        payments under this Section 8 constitute 409A Payments, references within
        this
        Section 8 to termination of employment shall mean Employee's "separation
        from
        service" as defined in Treas. Reg. Section 1.409A-1(h), including the default
        presumptions thereunder. 

       

      9. Remedies.
        If there
        is a breach or threatened breach of any provision of Section 6 or
        Section 7 of this Agreement, the Company will suffer irreparable harm and
        shall be entitled to an injunction restraining Employee from such breach.
        Nothing herein shall be construed as prohibiting the Company from pursuing
        any
        other remedies for such breach or threatened breach. 

       

      10. Severability.
        It is
        the clear intention of the Parties to this Agreement that no term, provision
        or
        clause of this Agreement shall be deemed to be invalid, illegal or unenforceable
        in any respect, unless such term, provision or clause cannot be otherwise
        construed, interpreted, or modified to give effect to the intent of the Parties
        and to be valid, legal or enforceable. The Parties specifically charge the
        trier
        of fact to give effect to the intent of the Parties, even if in doing so,
        information of a specific provision of this Agreement is required consistent
        with the foregoing stated intent. In the event that such a term, provision,
        or
        clause cannot be so construed, interpreted or modified, the validity, legality
        and enforceability of the remaining provisions contained herein and other
        application(s) thereof shall not in any way be affected or impaired thereby
        and
        shall remain in full force and effect. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      11. Waiver
        of Breach.
        The
        waiver by the Company or Employee of the breach of any provision of this
        Agreement by the other Party shall not operate or be construed as a waiver
        of
        any subsequent breach by that Party. 

       

      12. Entire
        Agreement.
        This
        document contains the entire agreement between the Parties and supersedes
        all
        prior oral or written agreements, if any, concerning the subject matter hereof
        or otherwise concerning Employee's employment by Employer (except for options
        to
        purchase shares of Employer's restricted stock previously granted to Employee).
        This Agreement may not be changed orally, but only by agreement in writing
        signed by the Parties. 

       

      13. Governing
        Law.
        This
        Agreement, its validity, interpretation and enforcement, shall be governed
        by
        the laws of the State of Maryland, excluding conflict of laws principles.
        Employee hereby expressly consents to personal jurisdiction in the state
        and
        federal courts located in San Diego, California for any lawsuit filed there
        against him by the Company arising from or relating to this Agreement.

       

      14. Notices.
        Any
        notice pursuant to this Agreement shall be validly given or served if that
        notice is made in writing and delivered personally or sent by certified mail
        or
        registered, return receipt requested, postage prepaid, to the following
        addresses: 

      

      
        	
                If
                  to Company:

              	
                 

              	
                InfoSonics
                  Corporation

                4350
                  Executive Drive,

                Suite
                  100, San Diego,

                CA
                  92121

                Attention:
                  Chief

                Executive
                  Officer

              
	 	 	 
	
                If
                  to Employee:

              	 	
                To
                  the address for

                Employee
                  set forth below

                his
                  signature.

              

      

       

      All
        notices so given shall be deemed effective upon personal delivery or, if
        sent by
        certified or registered mail, five business days after date of mailing. Either
        party, by notice so given, may change the address to which his or its future
        notices shall be sent. 

       

      15. Assignment
        and Binding Effect.
        This
        Agreement shall be binding upon Employee and the Company and shall benefit
        the
        Company and its successors and assigns. This Agreement shall not be assignable
        by Employee. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      17. Construction.
        Employee
        represents he has (a) read and completely understands this Agreement and
        (b) had an opportunity to consult with such legal and other advisers as he
        has desired in connection with this Agreement. This Agreement shall not be
        construed against any one of the Parties. 

       

      18. Insurance.
        The
        Company is to maintain directors' and officers' insurance in an amount
        determined reasonably by the Board of Directors of the Company. 

       

      IN
        WITNESS WHEREOF, the parties have caused this Agreement to be executed the
        day
        and year first above written. 

       

      
        
          	
                  EMPLOYEE

                	 	
                  INFOSONICS
                    CORPORATION

                
	 	 	 
	
                  Abraham
                    Rosler, Individually

                	
                    

                	
                  Joseph
                    Ram, Chief Executive

                  Officer

                

        

      

      
        	
                Address:

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