Document:

Exhibit
10.1

FIFTH AMENDMENT TO CREDIT AGREEMENT

THIS
FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of
October 12, 2006 by and between INFOSONICS CORPORATION, a Maryland
corporation  (“Borrower”), and WELLS
FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION (“Trade Bank”).

RECITALS

WHEREAS, Borrower
is currently indebted to Trade Bank pursuant to the terms and conditions of
that certain Credit Agreement between Borrower and Trade Bank dated as of
October 6, 2005, as amended from time to time (“Credit Agreement”).

WHEREAS, Trade
Bank and Borrower have agreed to certain changes in the terms and conditions
set forth in the Credit Agreement and have agreed to amend the Credit Agreement
to reflect said changes.

NOW, THEREFORE,
for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree that the Credit Agreement shall be
amended as follows:

I.              Article
I. CREDIT FACILITY, Section
1.1 The Facility is hereby
amended by deleting “October 1, 2006”
as the Facility Termination Date, and by substituting “October 1, 2008” therefor.

II.            The
first sentence of Article I. CREDIT
FACILITY, Section 1.2 Credit
Extension Limit, is hereby deleted in its entirety, and the
following substituted therefor:

“The aggregate outstanding amount of all Credit Extensions may at no
time exceed the lesser of (a) Thirty Million Dollars ($30,000,000) or (b) the
Borrowing Base in effect from time to time (“Overall Credit Limit”).”

III.           Article
I. CREDIT FACILITY, Section
1.4 Repayment is hereby
deleted in its entirety, and the following substituted therefor:

“1.4  Repayment;
Interest and Fees. Each funded Credit Extension shall be repaid
by Borrower, and shall bear interest from the date of disbursement at those per
annum rates and such interest shall be paid, at the times specified in the
Supplement, Note or Facility Document. Borrower agrees to pay to Trade Bank
with respect to (a) the Revolving Credit Facility, interest at a per annum
rate equal to (i) the Prime Rate minus .25% as specified in the Note, or
(ii) Wells Fargo’s LIBOR Rate plus 1.5% as specified in the Note, and
(b) the Subfacilities, the fees specified in the Supplement as well as
those fees specified in the relevant Facility Document(s). Interest and fees
will be calculated on the basis of a 360 day year, actual days elapsed. Any
overdue payments of principal (and interest to the extent permitted by law)
shall bear interest at a per annum floating rate equal to the Prime Rate plus
5%.”

IV.           The
REPORTS, Claim Forms section of EXHIBIT A, ADDENDUM TO CREDIT AGREEMENT is
hereby deleted in their entirety, and the following substituted therefor:

“Claim
Forms: Not later than fifteen (15) calendar days after and as of the end of
each month, a copy of any claim forms submitted under FCIA or Euler Hermes ACI
credit insurance policies.”

V.            The
FINANCIAL COVENANTS, Tangible Net Worth section
of EXHIBIT A, ADDENDUM TO CREDIT AGREEMENT
is hereby deleted in their entirety, and the following substituted therefor

“Tangible Net Worth. Not less than
$30,000,000 from the date hereof through December 31, 2006 and not less than
$30,000,000 plus 50% of net profit after tax from January 1, 2007 and
thereafter. (“Tangible Net Worth” means
the aggregate of total shareholders’ equity determined in accordance with GAAP plus
indebtedness which is subordinated to the Obligations to Trade Bank under a
subordination agreement in form and substance acceptable to Trade Bank or by
subordination language acceptable to Trade Bank in the instrument evidencing
such indebtedness less (i) all assets which would be classified as
intangible assets under GAAP, including, but not limited to, goodwill,
licenses, patents, trademarks, trade names, copyrights, capitalized software
and organizational costs, licenses and franchises, and (ii) assets which Trade
Bank determines in its business

 

judgment
would not be available or would be of relatively small value in a liquidation
of Borrower’s business, including, but not limited to, loans to officers or
affiliates and other items).”

VI            EXHIBIT B, REVOLVING CREDIT FACILITY SUPPLEMENT
shall be deleted in its entirety, and the attached EXHIBIT B, REVOLVING CREDIT FACILITY SUPPLEMENT, all terms of
which are incorporated herein by this reference, shall be substituted therefor.

VII.          EXHIBIT D, BORROWING BASE CERTIFICATE
is hereby deleted in its entirety, and the attached EXHIBIT D, BORROWING BASE CERTIFICATE, all terms of which are
incorporated herein by this reference, shall be substituted therefor.

Except as
specifically provided herein, all terms and conditions of the Credit Agreement
remain in full force and effect, without waiver or modification.  All terms defined in the Credit Agreement
shall have the same meaning when used in this Amendment.  This Amendment and the Credit Agreement shall
be read together, as one document.

Borrower hereby
remakes all representations and warranties contained in the Credit Agreement
and reaffirms all covenants set forth therein. 
Borrower further certifies that as of the date of this Amendment there
exists no Event of Default as defined in the Credit Agreement, nor any
condition, act or event which with the giving of notice or the passage of time
or both would constitute any such Event of Default.

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed as of the
day and year first written above.

	
   

  	
  WELLS FARGO HSBC TRADE BANK,

  
	
  INFOSONICS
  CORPORATION

  	
     NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
  By:

  	
     /s/
  Jeff Klausner

  	
   

  	
  By:

  	
      /s/ Naseem Aboudaher

  	
   

  
	
   

  	
     Jeff
  Klausner

  	
   

  	
  Naseem Aboudaher

  
	
  Title:

  	
   Chief
  Financial Officer

  	
   

  	
   

  	
  Assistant Vice PresidentExhibit
10.4.3

THIRD
AMENDMENT TO LEASE AGREEMENT

THIS THIRD
AMENDMENT TO LEASE AGREEMENT (“Third Amendment”) is made and entered into this
11th day of July, 2006, by and between Thomas J.
Hilb, individually, and Thomas J. Hilb, as Trustee of the Connie Hilb Trust
(hereinafter referred to as “Landlord”) and Sport-Haley, Inc., a Colorado
corporation (hereinafter referred to as “Tenant”).

RECITALS

A.            On July 29, 1994,
Landlord and Tenant entered into a Lease Agreement (the “Lease”) relating to
the lease of 66,640 square feet of the property located at 4600 East 48th Avenue, Denver, Colorado
80216 (the “Premises”).  The Lease was
amended by an Amendment to Lease Agreement dated January 12, 1996, under which
Tenant exercised its option to lease an additional 15,860 square feet (the
“Additional Space”) within the building (the “First Amendment”).  The Lease was further amended by a Second
Amendment to Lease Agreement dated September 28, 2001 in which Tenant extended
the term of the Lease to 12:00 a.m. October 31, 2006 and relinquished the
Additional Space to the Landlord (the “Second Amendment”).

B.            The parties desire to
amend the Lease to provide for an additional five (5) year term and to rent the
Premises and the Additional Space (a total of 82,500 square feet) (the “Total
Premises”) under the terms and provisions of the original Lease and this Third
Amendment.

C.            The parties desire to
reduce their understanding to a written amendment to the Lease.

D.            Any capitalized terms
not otherwise defined in this Third Amendment shall have the meanings provided
in the Lease.

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, together with the mutual promises contained herein, the
parties hereto do hereby agree as follows:

1.             The definition of
Premises set forth in paragraph 1 of the Lease shall be the description of the
Total Premises (82,500 square feet).

2.             The term of the Lease
is hereby extended to twelve o’clock a.m. October 31, 2011 (the “Extended
Term”) unless terminated sooner as herein provided.

3.             Paragraph 3 of the
Lease is hereby deleted and replaced with the following:

a.             From the date of this
Third Amendment through October 31, 2006, Tenant shall pay to Landlord equal
monthly installments of $22,740.84 in advance, without notice, without any
set-off or deduction whatsoever, commencing on the first day of the month
following the date of this Third Amendment and continuing on the first day of
each month thereafter through and including October 1, 2006.

 

b.             From November 1, 2006
through October 31, 2007, Tenant shall pay to Landlord the sum of $272,250.00
($3.30 per square foot per annum) payable in equal monthly installments of
$22,687.50 in advance, without notice, without any set-off or deduction whatsoever,
commencing on November 1, 2006 and continuing on the first day of each month
thereafter through and including October 1, 2007.

c.             From November 1, 2007
through October 31, 2008, Tenant shall pay to Landlord the sum of $280,500.00
($3.40 per square foot per annum) payable in monthly installments of $23,375.00
in advance, without notice, without any set-off or deduction whatsoever,
commencing November 1, 2007, and on the first day of each month thereafter
through and including October 1, 2008.

d.             From November 1, 2008
through October 31, 2011, Tenant shall pay to Landlord the sum of $288,750.00
($3.50 per square foot per annum) payable in monthly installments of $24,062.50
in advance, without notice, without any set-off or deduction whatsoever,
commencing November 1, 2008, and on the first day of each month thereafter
through and including October 1, 2011.

e.             Said Rental Payments
shall be made at the office of the Landlord located at 1529 Market Street,
Denver, Colorado 80202 or at such other place as Landlord may designate in
writing from time to time. Said payments shall be in lawful money of the United
States.

4.             Tenant’s
Proportionate Share shall be one hundred percent (100%), as set forth in the
Lease Section 6(a)(i).

5.             The Tenant accepts
the Premises in an “AS IS” condition. Tenant acknowledges and agrees that it
shall not receive any Tenant finish allowance and that Landlord shall not make
any improvements to the Total Premises.

6.             Section 17 of the
Lease is amended to provide notice to the Landlord as follows:

	
  Landlord

  	
  Thomas J. Hilb

  
	
   

  	
  1529 Market Street

  
	
   

  	
  Denver, Colorado 80202

  
	
   

  	
   

  
	
  With a copy to:

  	
  Moye White LLP

  
	
   

  	
  1400 Sixteenth Street 6th floor

  
	
   

  	
  Denver, Colorado 80202

  
	
   

  	
  Attn: Jamie Orcutt and John E. Moye

  

 

7.             Except as otherwise
provided in this Third Amendment, the Lease is extended for the Extended Term
on the same terms and conditions of the Lease, it being specifically intended
that any amendments or modifications of the Lease made by the First Amendment
and Second Amendment are null and void and of no further force or effect.

8.             To the extent that
any provisions contained in this Third Amendment are inconsistent with any of
the terms and provisions of the Lease, the terms and provisions of this Third
Amendment shall control.

 2
 

 

9.             This Third Amendment
shall be construed in accordance with the laws of the State of Colorado.

10.           This Agreement shall be
binding on the heirs, successors and assigns of the parties hereto.

11.           Except as modified or
amended by this Third Amendment, in all other respects the Lease shall remain
the same.

Executed as of the day
and year first above written.

	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  Sport-Haley, Inc., a Colorado corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald W. Jewell

  	
   

  
	
   

  	
   

  	
  Donald W. Jewell, CEO

  
	
   

  	
   

  
	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Thomas J. Hilb

  	
   

  
	
   

  	
  Thomas J. Hilb, Individually

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONNIE HILB TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas J. Hilb

  	
   

  
	
   

  	
   

  	
  Thomas J. Hilb, Trustee

  

 

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