Document:

Exhibit 10.8

 

FIRST
AMENDMENT TO CREDIT AGREEMENT AND LIMITED CONSENT AND WAIVER

 

FIRST
AMENDMENT TO CREDIT AGREEMENT AND LIMITED CONSENT AND WAIVER (this “Amendment”) dated as of May 28,
2014, by and among

WELLS FARGO
BANK, NATIONAL ASSOCIATION, successor by merger to WELLS FARGO RETAIL FINANCE, LLC (“Lender”),

GREAT AMERICAN
GROUP WF, LLC, a California limited liability company (“Original Borrower”), and

any other affiliate
of Original Borrower party hereto (such affiliates, together with Original Borrower, each a “Borrower” and collectively
“Borrowers” and Borrower, together with GAG Inc. (defined below), Great American (defined below), and/or any
Subsidiary of any of the foregoing which is or which becomes a party to any Loan Document from time to time, the “Credit
Parties”).

WHEREAS:

A.Borrowers
and Lender are party to that certain Second Amended & Restated Credit Agreement dated as of July 15, 2013 (as may be amended,
restated, supplemented or otherwise modified, renewed or replaced from time to time, the “Credit Agreement”),
pursuant to which Lender agreed, subject to the terms and conditions thereof, to extend credit and make certain other financial
accommodations available to Borrowers;

B.Great American
Group, Inc., a Delaware corporation (“GAG Inc.”) and Great American Group, LLC, a California limited liability
company (“Great American”) are parties to that certain Third Amended and Restated Guaranty dated as of July
15, 2013 (as may be amended, restated, supplemented or otherwise modified, renewed or replaced from time to time, the “Guaranty”),
pursuant to which GAG Inc. and Great American jointly and severally unconditionally guaranteed to Lender payment of (among other
things) all obligations under the Credit Agreement and other Loan Documents;

C.Credit Parties
have informed Lender that GAG Inc. is contemplating entering into a series of transactions consisting of the following (collectively,
the “Transactions”):

		(i)	a reverse stock split of GAG Inc.’s issued and outstanding common stock at a ratio of 1-for-20
(the “Reverse Stock Split”);

		(ii)	issuance and sale by GAG Inc. to certain investors, in a private placement, of an aggregate of
approximately 206,000,000 shares (prior to adjustment for the Reverse Stock Split) of GAG Inc.’s common stock at a purchase
price of $0.25 per share (prior to adjustment for the Reverse Stock Split) for aggregate gross proceeds to GAG Inc. of approximately
$51.4 million (the “Private Placement”);

		(iii)	payment by GAG Inc. of an aggregate of $30 million, plus accrued interest through the applicable
payoff date, to Andrew Gumaer, GAG Inc.’s Chief Executive Officer and Chairman, and Harvey Yellen, GAG Inc.’s President
and Vice Chairman (collectively, the “Great American Members”), in exchange for the complete satisfaction of
all amounts owed to the Great American Members pursuant to certain Subordinated Unsecured Promissory notes, dated as of July 31,
2009 (as amended, restated or modified from time to time), issued by GAG Inc. to such Great American Members (such repayment, the
“Debt Repayment”); and

		(iv)	acquisition by GAG Inc. through a series of mergers and securities purchases of B. Riley and Co.
Inc., B. Riley & Co. Holdings, LLC and Riley Investment Management LLC, each of which is wholly or majority owned by Bryant
Riley, a director of GAG Inc., in exchange for the issuance to Bryant Riley of 84,000,000 shares (prior to adjustment for any splits,
recapitalization or the like, including the Reverse Stock Split) of GAG Inc.’s common stock (such transactions, collectively,
the “Acquisition”).

D.Credit Parties
have requested that Lender consent to the Reverse Stock Split and Debt Repayment, waive a certain anticipated Event of Default
arising out of the Private Placement, and effect certain amendments to the Credit Agreement in connection with the Acquisition,
all as more specifically set forth herein, and Lender is willing to effect such changes on the terms and conditions hereinafter
set forth.

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NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties signatory hereto agree as follows:

1.                 
Definitions. Capitalized terms not otherwise defined herein shall have the respective
meanings given such terms in the Credit Agreement.

2.                 
Limited Consent. In accordance with, and in reliance on, representations and warranties
by Borrowers herein, Lender hereby consents to the Reverse Stock Split and the Debt Repayment. This limited consent shall be effective
only in this specific instance and for the specific purpose for which it is given, and shall not entitle any Credit Party to any
other or further consent in any similar or other circumstances. 

3.                 
Limited Waiver. The following Event of Default (the “Anticipated Event of
Default”) is expected to occur under Section 9.1(p) of the Credit Agreement upon the consummation of the Private Placement:
a Change of Control is expected to occur as a result of Permitted Holders (as such term is defined in the Credit Agreement prior
to giving effect to the amendments thereto provided for herein) ceasing to own, directly or indirectly, at least 15% of the Capital
Stock of GAG Inc. having the right to vote for a majority of the Board of Directors of GAG Inc. Effective as of the date that the
Private Placement is consummated (but not prior to such date), Lender hereby waives, on a one-time basis, the Anticipated Event
of Default. This limited waiver shall be effective only in this specific instance and for the specific purpose for which it is
given, and shall not entitle any Credit Party to any other or further waiver in any similar or other circumstances. 

4.                 
Amendments to Credit Agreement. Effective as of the date that the Acquisition is consummated
(but not prior to such date), the Credit Agreement shall be amended as follows:

(i)Change
of Control. The definition of “Change of Control” is hereby deleted in its entirety and the following is substituted
in its stead:

““Change of Control”
shall mean, at any time:

 

(a)       occupation
of a majority of the seats (other than vacant seats) on the Board of Directors (or other body exercising similar management authority)
of GAG Inc. by Persons who are not Continuing Directors and were neither (i) nominated by the Permitted Holders nor (ii) appointed
by directors so nominated;

(b)       any
Person or “group” (within the meaning of the Securities and Exchange Act of 1934, as amended), other than a Permitted
Holder, is or becomes the beneficial owner (within the meaning of Rule 13d-3 or 13d-5 of the Securities and Exchange Act of 1934,
as amended, except that such Person or group shall be deemed to have “beneficial ownership” of all Capital Stock that
such Person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time),
directly or indirectly, of (i) twenty-five percent (25%) or more (on a fully diluted basis) of the total then outstanding Capital
Stock of GAG Inc. entitled to vote for the election of directors of GAG Inc., and (ii) Capital Stock of GAG Inc. entitled to vote
for the election of directors of GAG Inc. in an amount greater than the number of shares of such Capital Stock beneficially owned
by the Permitted Holders (or over which the Permitted Holders have voting control);

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(c)       
GAG Inc. fails at any time to own, directly or indirectly, 100% of the Capital Stock of Great American free and clear of all Liens
(other than Permitted Encumbrances);

(d)       
Great American fails at any time to own, directly or indirectly, 100% of the Capital Stock of any Borrower free and clear of all
Liens (other than Permitted Encumbrances) and/or ceases to manage any Borrower’s business and operations; and

(e)       
either of Harvey Yellen or Andrew Gumaer: (i) ceases to be actively engaged in the management and day-to-day operations and administration
of any of the Credit Parties (including, without limitation, any Borrower) or (ii) ceases to be a Continuing Director of GAG Inc.
and Great American.

(ii)Permitted Holders. The
definition of “Permitted Holders” is hereby deleted in its entirety and the following is substituted in its stead:

 

““Permitted Holders”
shall mean Harvey Yellen, Andrew Gumaer and Bryant Riley.

 

5.                 
Representations and Warranties. Borrowers represent and warrant to Lender that:

(a)               
the representations and warranties set forth in the Credit Agreement and in each of the other
Loan Documents are true and correct on and as of the date hereof, as though made on such date,
and as if each reference therein to “this Agreement” or the “Credit Agreement” or the like includes reference
to this Amendment and the Credit Agreement as amended hereby (except to the extent that such representations and warranties expressly
relate to an earlier date, in which case they are true and correct as of such earlier date);

(b)          
the execution, delivery and performance of this Amendment by each Credit Party (i) are all
within such Credit Party’s corporate powers, (ii) are not in contravention of any Laws or the terms of such Credit Party’s
Organization Documents, or any indenture, agreement or undertaking to which such Credit Party is a party or by which such Credit
Party or its property is bound, and (iii) shall not result in the creation or imposition of any lien, claim, charge or encumbrance
upon any of the Collateral, except in favor of Lender pursuant to the Credit Agreement and the other Loan Documents as amended
hereby;

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(c)           
this Amendment and each other agreement or instrument to be executed and delivered by Credit
Parties in connection herewith have been duly authorized, executed and delivered by all necessary action on the part of such Credit
Party and, if necessary, its stockholders, as the case may be, and the agreements and obligations of each Credit Party contained
herein and therein constitute the legal, valid and binding obligations of such Credit Party, enforceable against it in accordance
with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other
laws affecting creditor’s rights generally and by general principles of equity;

(d)          
after giving effect to this Amendment, no Default or Event of Default exists as of the date
hereof; and

(e)           
no action of, or filing with, or consent of any Governmental Authority, and no approval or
consent of any other party (other than, in each case, actions, filings or consents that have already been taken, made or obtained)
is required to authorize, or is otherwise required in connection with, the execution, delivery and performance of this Amendment.

6.                 
Conditions Precedent. The consent and amendments set forth in this Amendment shall
not be effective until each of the following conditions precedent are satisfied in a manner satisfactory to Lender:

(a)               
receipt by Lender of this Amendment, duly authorized and executed by each Credit Party; 

(b)              
to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses
(including, without limitation, reasonable fees and expenses of Choate, Hall & Stewart LLP, counsel to the Agent) required
to be reimbursed or paid by Credit Parties pursuant to the terms of the Credit Agreement;

(c)               
after giving effect to this Amendment, no Default or Event of Default shall have occurred
and be continuing, nor shall any Default or Event of Default result from the consummation of the transactions contemplated herein;
and

(d)              
all orders, permissions, consents, approvals, licenses, authorizations and validations of,
and filings, recordings and registrations with, and exemptions by, any Governmental Authority, or any other Person required to
authorize or otherwise required in connection with the execution, delivery and performance by each Credit Party of this Amendment
and the transactions contemplated, shall have been obtained and shall be in full force and effect.

For the avoidance of doubt, (i) consummation
of the Private Placement shall be a condition precedent to the effectiveness of the limited waiver set forth in Section 3 above
and (ii) consummation of the Acquisition shall be a condition precedent to the effectiveness of the amendments set forth in Section
4 above.

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7.                 
Effect on Loan Documents. As amended hereby, the Credit Agreement and the other Loan
Documents shall be and remain in full force and effect in accordance with their terms and hereby are ratified and confirmed by
each Credit Party in all respects. The execution, delivery, and performance of this Amendment shall not operate as a waiver of
any right, power, or remedy of Lender under the Credit Agreement or the other Loan Documents. Each Credit Party hereby ratifies
and confirms in all respects all of its obligations and any prior grant of a security interest under the Credit Agreement and the
other Loan Documents.

8.                 
Further Assurances. Each Credit Party shall execute and deliver all agreements, documents
and instruments, each in form and substance satisfactory to Lender, and take all actions as Lender may reasonably request from
time to time, to perfect and maintain the perfection and priority of the security interest in the Collateral held by Lender and
to fully consummate the transactions contemplated under this Amendment and the Credit Agreement, as modified hereby.

9.                 
Release. Each Credit Party hereby remises, releases, acquits, satisfies and forever
discharges Lender, its agents, employees, officers, directors, predecessors, attorneys and all others acting on behalf of or at
the direction of Lender, of and from any and all manner of actions, causes of action, suit, debts, accounts, covenants, contracts,
controversies, agreements, variances, damages, judgments, claims and demands whatsoever, in law or in equity, which any of such
parties ever had, or now has, to the extent arising from or in connection with any act, omission or state of facts taken or existing
on or prior to the date hereof, against Lender, its agents, employees, officers, directors, attorneys and all persons acting on
behalf of or at the direction of Lender (“Releasees”), for, upon or by reason of any matter, cause or thing
whatsoever through the date hereof. Without limiting the generality of the foregoing, each Credit Party waives and affirmatively
agrees not to allege or otherwise pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or
other rights they have or may have as of the date hereof, including, but not limited to, the rights to contest any conduct of Lender
or other Releasees on or prior to the date hereof.

10.             
No Novation; Entire Agreement. This Amendment is not a novation or discharge of the
terms and provisions of the obligations of Credit Parties under the Credit Agreement and the other Loan Documents. There are no
other understandings, express or implied, among Credit Parties and Lender regarding the subject matter hereof or thereof.

11.             
Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

12.             
Counterparts; Electronic Execution. This Amendment may be executed in any number of
counterparts and by different parties and separate counterparts, each of which when so executed and delivered shall be deemed an
original, and all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed counterpart
of a signature page to this Amendment by facsimile or other electronic transmission shall be as effective as delivery of a manually
executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by facsimile or other electronic
transmission also shall deliver a manually executed counterpart of this Amendment but the failure to deliver a manually executed
counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

13.             
Construction. This Amendment and the Credit Agreement shall be construed collectively
and in the event that any term, provision or condition of any of such documents is inconsistent with or contradictory to any term,
provision or condition of any other such document, the terms, provisions and conditions of this Amendment shall supersede and control
the terms, provisions and conditions of the Credit Agreement. Upon and after the effectiveness of this Amendment, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or
words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”,
“thereunder”, “therein”, “thereof” or words of like import referring to the Credit Agreement,
shall mean and be a reference to the Credit Agreement as modified hereby.

[Signature Pages Follow]

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

 

GREAT AMERICAN GROUP WF, LLC., a California limited liability
company

 

 

By: __/s/ Phillip J. Ahn_________________

Name: Phillip J. Ahn

Title: Chief Financial Officer, Chief
Operating Officer

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WELLS FARGO BANK,
NATIONAL ASSOCIATION

 

 

 

By: _/s/Joseph Burt___________________

Name: Joseph Burt

Title:Director

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ACKNOWLEDGEMENT AND AGREEMENT

 

Each of the undersigned hereby acknowledges and agrees to the provisions
of the foregoing Amendment applicable to it, including but not limited to the releases set forth in Section 9.

 

GREAT AMERICAN GROUP, INC., a Delaware corporation

 

 

By: /s/ Phillip J. Ahn_______________________

Name: Phillip J. Ahn

Title: Chief Financial Officer, Chief
Operating Officer

 

 

great american group,
llc, a California limited liability company

 

 

By: /s/ Phillip J. Ahn________________________________

Name: Phillip J. Ahn

Title: Chief Financial Officer, Chief
Operating Officer

 

    	8EX-10.3

 Exhibit 10.3 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is entered into effective as of April 9, 2014 (the “Effective Date”) by
and between InfoSonics Corporation, a Maryland corporation (the “Company”), and Vernon A. LoForti (“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 Vice President,
Chief Financial Officer (“CFO”) and Secretary. 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 Company’s Chief Executive Officer (“CEO”) and the Board of Directors of the Company (the “Board”). 

Employee understands that his employment as Vice President, CFO and Secretary of the Company involves a high degree of trust and confidence,
that he is employed for the purpose of protecting the Company’s financial assets and ensuring the integrity of the Company’s financial reporting to the Board, the Securities and Exchange Commission and the investing public, 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 Vice President, CFO and Secretary of the Company, or in such other position as determined by the CEO and the Board,
and in that capacity shall work with the Company to pursue the Company’s plans as directed by the CEO and the Board. 
 3.2 Employee
shall perform such duties that are normally associated with the positions of Vice President, CFO and Secretary consistent with the bylaws of the Company and such other duties as may be requested by the CEO and the Board. 

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 of the Company. 
 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, including without limitation those responsibilities and obligations incurred
pursuant to this Agreement. 
 3.5 Notwithstanding the restrictions set forth in this Section 3, Employee is permitted to participate
in any capacity with any civic, nonprofit, religious, welfare, social or professional organization that will not materially affect Employee’s performance of duties hereunder. 

4. Term. Unless terminated earlier as provided for in this Agreement, the term of this Agreement shall be for two years,
commencing on the Effective Date and ending on April 8, 2016 (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 functions 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 $205,000 (“Base Salary”), 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 of up to 35% of Employee’s Base Salary set forth in Section 5(a) based on, but not limited to, the following criteria: 

 

	 	•	 	Overall Company profitability 

  

	 	•	 	Maintaining a fully competent accounting team 

  

	 	•	 	Producing timely monthly consolidated balance sheet and income statements 

  

	 	•	 	Streamlining financial and other operating systems to yield cost savings. 

 (c) Company 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 Company for the benefit of Company’s executives during the Term. Except for the fact that Company 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 Company’s other executives, nothing in this Agreement shall limit (i) Company’s ability to exercise the discretion provided to it under any such benefit plan, or
(ii) Company’s discretion to adopt, not adopt, amend or terminate any such benefit plan at any time. 
 (d) The Company shall
provide Employee with four (4) weeks vacation leave per each year of Employee’s employment (which vacation leave may carry over and accrue up to an aggregate of 30 days 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
Company 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 Company’s data, including but not limited to
(a) information, drawings, sketches, plans or other documents concerning Company’s business or development plans, customers or suppliers, (b) Company’s development, design, construction or sales and marketing methods or
techniques, or (c) Company’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 certain of Employee’s actions following any termination of employment. Employee agrees that so long as Employee is employed by the Company and
for a period of one (1) year after termination of employment, 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, during the term 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 Company, in or about any market in which Company 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 Company, imposes no undue hardship on Employee, and is not injurious to the public.
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 and does not revoke such general release and
waiver within seven days after its execution, continue to pay as severance Employee’s salary for nine (9) months. Such payments shall be made in accordance with the Company’s customary payroll practices and shall be subject to
applicable withholding and payroll deductions and to the extent required by Section 409A of the Code, if the period to execute the general release and waiver and not revoke such release and waiver spans two calendar years, the payment of
severance shall commence in the second calendar year with a lump sum payment on the earliest permissible payment date of such severance amounts which absent the requirement of a general release and waiver would have been paid prior to such payment
date. 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 CEO, 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 within 90 days after its
first occurrence 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 of salary that average no less than the percentage reduction incurred by Employee, provided that Employee shall have first
given written notice of such default to the Company within 90 days after such reduction and if within thirty days after receipt of such notice, the Company has not cured such reduction. 

 (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 Company 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 Company (except for options to
purchase shares of Company’s 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
 3636 Nobel Drive,
Suite 325
 San Diego, CA 92122
 Attention: CEO

		
	If to Employee:	 	 InfoSonics Corporation
 3636 Nobel Drive,
Suite 325
 San Diego, CA 92122, and after
 termination of
employment, to the last
 home address in the Company’s

records

 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
			
	 /s/ Vernon A. LoForti
	 		  	 /s/ Joseph Ram

	Vernon A. LoForti, Individually	 		  	By: Joseph Ram
		 		  	Its: President & CEO

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