SEC Contract Filing

Filing Date: 2015-03-16

Document Content:
<DOCUMENT>
<TYPE>EX-10.31
<SEQUENCE>13
<FILENAME>a12312014exhibit1031direct.htm
<DESCRIPTION>EXHIBIT 10.31 DIRECTOR AGREEMENT ARTHUR JOHN HASS NOVEMBER 18 2014
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<a name="sdd91cd14f64b44459ddecd23d17914aa"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.31</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">DIRECTOR AGREEMENT</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In consideration of being considered for a position on the Board of Directors of Rosetta Stone Inc. (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Corporation</font><font style="font-family:inherit;font-size:12pt;">&#8221;) and in accordance with Section 1.4 of the Second Amended and Restated Bylaws (as amended, the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Bylaws</font><font style="font-family:inherit;font-size:12pt;">&#8221;) of the Corporation, the undersigned hereby represents and agrees that the undersigned (a) is not and will not become a party to (i) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how the undersigned, if elected as a director of the Corporation, will act or vote on any issue or question (a &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Voting Commitment</font><font style="font-family:inherit;font-size:12pt;">&#8221;) that has not been disclosed to the Corporation or (ii) any Voting Commitment that could limit or interfere with the undersigned&#8217;s ability to comply, if elected as a director of the Corporation, with the undersigned&#8217;s fiduciary duties under applicable law, (b) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director, and (c) in the undersigned&#8217;s individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock trading policies and guidelines of the Corporation. The undersigned has listed and described in detail any Voting Commitment in place as of the date of this Agreement on </font><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Exhibit A</font><font style="font-family:inherit;font-size:12pt;">&#32;attached hereto and attached to </font><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Exhibit A</font><font style="font-family:inherit;font-size:12pt;">&#32;a copy of such Voting Commitment if it is in writing and agrees that if he enters into any such Voting Commitment at a later date, he will describe such Voting Commitment in detail and provide a copy of such Voting Commitment to the board of directors of the Corporation if it is in writing.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In accordance with Section 1.3(a)(ii)(A) of the Bylaws of the Corporation, attached as </font><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Exhibit B</font><font style="font-family:inherit;font-size:12pt;">&#32;hereto is a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three years, and any other material relationships, between or among the undersigned or any Affiliate or Associate of the undersigned and any of John H. Lewis (&#8220;Lewis&#8221;), Osmium Partners, LLC (&#8220;Osmium Partners&#8221;), Osmium Capital, LP (&#8220;Fund I&#8221;), Osmium Capital II, LP (&#8220;Fund II&#8221;), Osmium Spartan, LP (&#8220;Fund III&#8221;), Osmium Diamond, LP (Fund IV&#8221;), and Osmium Special Opportunity Fund, LP (&#8220;Fund V&#8221;, and together with Lewis, Osmium Partners, Fund I, Fund II, Fund III, and Fund IV, the &#8220;Osmium Parties&#8221;), or any Affiliates (defined below) or Associates (defined below) of the Osmium Parties or others acting in concert therewith, including, without limitation all information that would be required to be disclosed pursuant to Rule 404 promulgated under Regulation S-K if the Osmium Parties or their Affiliates or Associates were the &#8220;registrant&#8221; for purposes of such rule and the undersigned were a director or executive officer of such registrant.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Although the undersigned has previously had a relationship with the Osmium Parties, as of the date of this Agreement the undersigned does not, and so long as the undersigned is a director of the Corporation, the undersigned