UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________

FORM 8-K
_________________________________________


Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  January 5, 2018 (December 31, 2017)
_________________________________________


InfoSonics Corporation
(Exact name of registrant as specified in its charter)


Commission File Number: 001-32217

Maryland

33-0599368

(State or other jurisdiction

of incorporation)

(IRS Employer

Identification No.)

 


4435 Eastgate Mall, Suite 320

San Diego, CA 92121
(Address of principal executive offices, including zip code)

(858) 373-1600
(Registrant’s telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


 


 

Item 1.01. Entry into a Material Definitive Agreement.

 

Amendment No. 2 to Merger Agreement

On January 5, 2018, InfoSonics Corporation (the “Company”) entered into Amendment No. 2 to Agreement and Plan of Merger (the “Merger Amendment”) with Cooltech Holding Corp. (“Cooltech”) and the Company’s wholly-owned subsidiary, InfoSonics Acquisition Sub, Inc. (“Merger Sub’), pursuant to which the Agreement and Plan of Merger, dated as of July 25, 2017, as amended on September 14, 2017, by and among the Company, Cooltech and Merger Sub (the “Merger Agreement”) was amended to account for the reverse stock split that occurred on October 10, 2017, significantly reduce the total amount of Merger Consideration (as defined in the Merger Amendment), extend the End Date (as defined in the Merger Amendment) to March 14, 2018, and certain minor changes.

 

The foregoing description of the Merger Amendment does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the full text of the document, which is attached hereto as Exhibit 2.1 to this Current Report on Form 8-K, and is incorporated herein by reference.

 

Amendment No. 1 to Securities Purchase Agreement

On December 31, 2017, the Company entered into Amendment No. 1 to Securities Purchase Agreement (the “SPA Amendment”) with certain investors, pursuant to which the Securities Purchase Agreement, dated as of August 2, 2017, by and among the Company and certain investors was amended to, among other things, extend the termination date and the Closing Date (as defined in the SPA Amendment) from December 31, 2017 to January 5, 2018.

 

The foregoing description of the SPA Amendment does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the full text of the document which is attached hereto as Exhibit 2.2 to this Current Report on Form 8-K, and is incorporated herein by reference.

 

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

 

On January 2, 2018, the Company received a notification from the Listing Qualifications Department of The NASDAQ Stock Market LLC (“NASDAQ”) indicating that the Company is not in compliance with NASDAQ Listing Rule 5620(a) due to its failure to hold an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year ended December 31, 2016.

 

The letter received from NASDAQ has no immediate effect on the listing of the Company’s common stock. Under NASDAQ Listing Rules, the Company has until February 16, 2018 to submit a plan to regain compliance. The Company submitted a plan of compliance to NASDAQ on January 4, 2018.  If the Company’s plan is accepted, NASDAQ can grant an extension of up to 180 calendar days from December 31, 2016, or June 29, 2018, to regain compliance.  The Company delayed its annual meeting because of the contemplated merger transaction that would be submitted to the Company’s stockholders for a vote.

 

No Offer or Solicitation

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

 

Additional Information and Where To Find It

The merger set forth in the Merger Agreement and Merger Amendment will be submitted to the stockholders of each of the Company for their consideration. The Company will file with the SEC an amendment to the Registration Statement on Form S-4 that will include a proxy statement/prospectus of the Company.  INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY

 


 

WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC’s webs ite (www.sec.gov). In addition, investors and stockholders will be able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC by InfoSonics free of charge by directing a request to Vern on A. LoForti, Vice President and Chief Financial Officer, InfoSonics Corporation, 4435 Eastgate Mall, Suite 320 , San Diego, CA  9212 1 , vern.loforti@infosonics.com; Phone: 858-373-1675.

 

Participants in the Solicitation

The Company, Cooltech, and certain of their respective directors, executive officers and other members of management and employees, under SEC rules may be deemed to be participants in the solicitation of proxies from Company stockholders in connection with the proposed transaction. Information regarding the interests of the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Company stockholders in connection with the proposed transaction will be set forth in the proxy statement/prospectus when it is filed with the SEC. You can find more detailed information about the Company’s executive officers and directors in its Annual Report on Form 10-K, as amended, filed with the SEC on March 10, 2017 and April 27, 2017.

 

Item 9.01. Financial Statem ents and Exhibits.

 

(d)        Exhibits.

 

Exhibit
No.

 

Description

2.1

 

Amendment No. 2 to Agreement and Plan of Merger, dated as of January 5, 2018, by and among Cooltech Holding Corp., InfoSonics Corporation and InfoSonics Acquisition Sub, Inc.

2.2

 

Amendment No. 1 to Securities Purchase Agreement, dated as of December 31, 2017, by and among InfoSonics Corporation and certain investors.

2.3

 

Amendment No. 2 to Securities Purchase Agreement, dated as of January 5, 2018, by and among InfoSonics Corporation and certain investors.


 


 

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

InfoSonics Corporation

 

 

 

 

 

 

 

 

Date:

January 5, 2018

By:

/s/ Vernon A. LoForti

 

 

 

Vernon A. LoForti

 

 

 

Chief Financial Officer

 

 

 

 

 

 

 

 

Exhibit 2.1

AMENDMENT NO. 2 TO AGREEMENT AND PLAN OF MERGER

THIS AMENDMENT NO. 2, dated January 5, 2018 (this “ Amendment ”) to the AGREEMENT AND PLAN OF MERGER (the “ Merger Agreement ”), dated as of July 25, 2017 and amended as of September 14, 2017 (the “ First Amendment ”), is made by and among Cooltech Holding Corp., a Nevada corporation (the “ Company ”), InfoSonics Corporation, a Maryland corporation (“ Parent ”), and InfoSonics Acquisition Sub, Inc., a Nevada corporation and a wholly-owned subsidiary of Parent (“ Merger Subsidiary ”). Parent, Merger Subsidiary, and the Company are sometimes referred to herein individually as a “ Party ” and collectively as the “ Parties ”. To the extent that capitalized terms are not defined in the text of this Amendment, such terms have the meanings set forth in the Merger Agreement.

RECITALS

A. Parent, the Company and Merger Subsidiary are parties to the Merger Agreement.  Under the Merger Agreement, Parent had agreed to issue 12,500,000 (post 1:5 reverse split) shares of Parent Common Stock to the Company’s stockholders as the merger consideration (the “ Original Merger Consideration ”).

 

B. The Parties subsequently amended the Merger Agreement on September 14, 2017 to, among other things, detail the allocation of the Merger Consideration, cancel outstanding Company warrants, and revise the number of Company nominees from three to four to be appointed to the Board of Directors of Parent upon completion of the Merger.

 

C. Subsequent to the execution of the First Amendment, (A) the Company’s wholly owned subsidiary, OneClick International, LLC, a Florida limited liability company (“ OneClick ”) entered into an agreement with Delavaco Partners Inc. (the “ One Click Agreement ”) pursuant to which its purchase of certain assets/companies from Delavaco Partners Inc. were unwound (the “ Excluded Property ”); and (B) Parent has reduced the Merger Consideration set forth in the Merger Agreement by 3,125,000 (“ Excluded Property Consideration ”) to 9,375,000 (each post 1:5 reverse split) shares of Common Stock (the “ New Merger Consideration ”) to reflect that the Excluded Property is no longer part of the merger transaction at the Closing.

 

D. The Excluded Property is set forth in an Option Agreement pursuant to which OneClick, subject to several conditions precedent to exercise, including, without limitation, post-Closing Parent Board approval (and such other votes and approvals, regulatory or otherwise), has the option to purchase the Excluded Property after the Closing and thereafter issue the Excluded Property Consideration.

 

E. Subject to the satisfaction of each of the conditions to closing, including, without limitation, Parent’s receipt of an updated fairness opinion from Stout, Risius, Ross LLC, Parent Board of Directors approval and Parent Special Committee approval, the Parent and the Company desire to adopt the New Merger Consideration payable upon closing of the Merger.

 

 


 

F. The Partie s desire to further amend the Merger Agreement in accordance with Section 11.03 of the Merger Agreement as set forth herein.

 

AGREEMENT

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I

AMENDMENTS

Section 1.1 Amendment for Reverse Stock Split .  All references to Parent’s Common Stock in the Merger Agreement not set forth in this Amendment will be, and hereby are, adjusted to reflect the one-for-five reverse stock split effected by Parent on October 10, 2017.  All references to Parent’s Common Stock in this Amendment give effect to such reverse stock split.  Any additional reverse stock splits or other splits, stock dividends or the like that occur after the date of this Amendment shall also adjust, as appropriate, the Merger Consideration and the Excluded Property Consideration.

Section 1.2 Amendment to Section 2.02(b) .  Section 2.02(b) of the Merger Agreement, will be, and hereby is, amended by adding the below as subsection (iv) as follows and renumbering all subsections thereafter accordingly:

“(iv) an updated fairness opinion from Stout, Risius, Ross LLC with respect to the Merger Consideration; and

Section 1.3 Amendment to Section 2.03 .  Section 2.03 of the Merger Agreement will be, and hereby is, amended and restated in its entirety as follows:

“At the Effective Time:

(a) Except as provided in this Section 2.03, all outstanding shares of Company Stock (on an “as converted” basis, with respect to the Company’s outstanding Series A Convertible Preferred Stock), shall be converted into the right to receive an aggregate of 9,375,000 shares of Parent’s Common Stock (which may include, on an “as converted” basis, a certain number of shares of Parent’s Series A Convertible Preferred Stock (convertible on a share for share basis into Parent Common Stock), at the election of any Company Shareholder who, as a result of receiving shares of Parent’s Common Stock, would own in excess of 4.99% of Parent’s issued and outstanding Common Stock) (the “ Merger Consideration ”).  As of the Effective Time, all such shares of Company Stock shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or distributions pursuant to Section 2.04(f), in each case to be issued or paid in accordance with Section 2.04, without interest.

 

(b) The Merger Consideration shall be allocated as follows: (i) holders of an aggregate of 2,275,222 shares of Company Stock issued between April 2017 and June 2017 in connection with the Company’s private placement (the “ Private Placement Shares ”) shall be entitled to

 


 

receive, on a pro rata basis, an aggregate of 2,437,738 shares of Parent’s Common Stock (or the equivalent, on an “as converted” basis, of Parent’s Series A Convertible Preferred Stock) and (ii) holders of shares of Company Stock, including shares of the Company’s outstanding shares of Series A Convertible Preferred Stock (calculated on an “a s converted basis) that are not Private Placement Shares shall be entitled to receive, on a pro rata basis, an aggregate of 6,937,262 shares of Parent’s Common Stock (or the equivalent, on an “as converted” basis, of Parent’s Series A Convertible Preferred Stock).

 

(c) All such shares of Company Stock shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or distributed pursuant to Section 2.04(f), in each case to be issued or paid in accordance with Section 2.04, without interest.

 

(d) Each share of Company Stock held by the Company as treasury stock or owned by Parent immediately prior to the Effective Time shall be canceled, and no payment shall be made with respect thereto.

 

(e) Each share of Company Stock held by any Subsidiary of either the Company or Parent immediately prior to the Effective Time shall be converted into such number of shares of stock of the Surviving Corporation such that each such Subsidiary owns the same percentage of Surviving Corporation immediately following the Effective Time as such Subsidiary owned in the Company immediately prior to the Effective Time.

 

(f) Each share of common stock of Merger Subsidiary outstanding immediately prior to the Effective Time shall be converted into and become one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation.”

 

Section 1.4 Amendment to Section 10.01(b)(i) .  Section 10.01(b)(i) of the Merger Agreement will be, and hereby is, amended and restated in its entirety as follows:

“(i) the Merger has not been consummated on or before March 14, 2018 (the “ End Date ”); provided , that the right to terminate this Agreement pursuant to this Section 10.01(b)(i) shall not be available to any party whose breach of any provision of this Agreement results in the failure of the Merger to be consummated on or before the End Date;”

Section 1.5 Amendment to Company Disclosure Schedule .  The Company Disclosure Schedule shall be amended as set forth on the Amended Company Disclosure Schedule attached hereto as Exhibit A .

 

 


 

ARTICLE II

CONDITIONS AND FURTHER AGREEMENTS

 

Section 2.1 Offering .  No later than January 19, 2018 (the “ Funding Date ), Parent shall offer and sell in a private placement (the “ Offering ”) solely to accredited investors (each, an “ Investor ” and, collectively, the “ Investors ”) and such Investors shall purchase, (i) three-year 0% senior convertible notes in the aggregate principal amount of One Million ($1,000,000) (the “ Notes ”), which shall be convertible at a per share price equal to 105% of the consolidated closing bid price on the date prior to execution of the governing purchase, as reported by the NASDAQ Capital Market and (ii) issued warrant to purchase up to 100% of such number of shares into which such purchased note is convertible at a per share price equal to 110% of the consolidated closing bid price on the date prior to execution of the governing purchase, as reported by the NASDAQ Capital Market.

Section 2.2 Failure to Fund Offering . In the event the Investors fail to fund the Offering by the Funding Date, the amendments provided for in Sections 1.6 and 1.7 hereof shall be of no further force or effect.  In addition, the extension of the Termination Date to March 14, 2018 (the “ Extended Termination Date ”) in that certain Escrow Agreement dated August 2, 2017, as amended on December 31, 2017 (the “ Escrow Agreement ”) and that certain Securities Purchase Agreement dated August 2, 2017, as amended on December 31, 2017 (the “ SPA ”) shall be of no further force or effect.

Section 2.3 Failure to Consummate Offering .  In the event Parent fails to offer the Notes by the Funding Date through no fault of the Investors or the Company (i) the amendments provided for in Article I hereof shall remain in full force and effect and (ii) the Extended Termination Date in the Escrow Agreement and SPA shall remain in full force and effect.

ARTICLE III

MISCELLANEOUS PROVISIONS

Section 3.1 Confirmation .  Except as modified herein, all terms and provisions of the Merger Agreement (including the exhibits and schedules thereto) are unchanged and remain in full force and effect.

Section 3.2 Entire Agreement .  This Amendment and the Merger Agreement (as amended hereby) constitute the entire agreement between the Parties with respect to the subject matter of this Amendment and the Merger Agreement and supersede all prior agreements and understandings, both oral and written, between the Parties with respect to the subject matter of hereof.

Section 3.3 Amendments and Waivers .  No amendment of any provision of this Amendment shall be valid unless the same shall be in writing and signed by each Party.  No failure on the part of any Party to exercise any power, right, privilege or remedy under this Amendment, and no delay on the part of any Party in exercising any power, right, privilege or remedy under this Amendment, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy.  

 


 

Section 3 . 4 Counterparts .   This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Signatures received as a “.pdf” attachment to electronic mail shall be treated as original signatures for all purposes of this Amendment.   This Amendment shall become effective when each party hereto shall have received a counterpart hereof signed by all of the other Parties hereto. Until and unless each party has received a counterpart hereof signed by the other party hereto, this Amendment shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication).

Section 3.5 Governing Law .  This Amendment shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law rules of such state (except that the provisions of the laws of the State of New York shall apply with respect to the effectiveness of the Merger, fiduciary duties and any provisions set forth herein or in the Merger Agreement that are required to be governed by such laws or where such laws are otherwise mandatorily applicable to the transactions contemplated hereby).

 

[Signatures follow on next page]

 

 


 

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed and delivered as of the date and year first above written.

 

 

COOLTECH HOLDING CORP.

 

 

 

By: /s/ Mauricio Diaz

Name: Mauricio Diaz

Title: Chief Executive Officer


 


 

INFOSONICS CORPORATION

 

 

 

By: /s/ Vernon A. LoForti

Name: Vernon A. LoForti

Title:   Vice President, Chief Financial Officer and    

            Corporate Secretary

 

 

 

INFOSONICS ACQUISITION SUB, INC.

 

 

By: /s/ Vernon A. LoForti

Name: Vernon A. LoForti

Title:   Secretary

 


 


 

Exhibit A

Amended Company Disclosure Schedule

 

 

Section 4.21(a)(xix) of the Company Disclosure Schedule is hereby amended to add the following Material Contracts:

 

 

The OneClick Agreement between OneClick International LLC and Delavaco Partners, Inc. dated January 5, 2018.

 

The Option Agreement between OneClick and Delavaco Partners, Inc. dated January 5, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 2.2

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT

This Amendment No. 1 to Securities Purchase Agreement (this “Amendment”) dated this 31 st day of December, 2017, by and among InfoSonics Corporation, a Maryland corporation (the “Company”), and each purchaser identified on the signature pages hereto (the “Purchasers”).

W I T N E S S E T H:

WHEREAS, the Company and the Purchasers are party to a securities purchase agreement, dated on or about August 3, 2017 (the “Purchase Agreement”);

WHEREAS, the Company and the Purchasers desire to amend the Purchase Agreement as more particularly set forth below;

WHEREFORE, the parties do hereby agree as follows:

1. The definition of “Closing Date” in Section 2.1 of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:

“Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than January 5, 2018.

2. The last paragraph of Section 2.2(b) is hereby amended and restated in its entirety to read as follows:

For the avoidance of doubt, the Purchasers acknowledge and agree that, upon the Purchasers’ funding of the Subscription Amount into the Escrow Account, such subscriptions will be irrevocable and will not be returned to the Purchasers unless the Company fails to satisfy the Closing Conditions set forth in Section 2.2(b) by January 5, 2018.

3. Section 5.1 is hereby amended and restated in its entirety to read as follows:

5.1 Termination.  This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been cons ummated on or before January 5, 2018; provided, however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties).

4. Except as modified herein, the terms of t he Purchase Agreement shall remain in full force and effect.

1

 


5 . This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and shall be binding upon all parties, their successors and assigns, and all of which taken together shall constitute one and the same Amendment.  A signature delivered by facsimile shall constitute an original.

[Signature Page Follows]


2

 


 

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

 

 

InfoSonics Corporation

 

By:   /s/ Vernon A. LoForti

Name:  Vernon A. LoForti

Title:    Vice President & Chief Financial Officer

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]


3

 


IN WITNESS WHEREOF, the undersigned have caused th is Amendment to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

Name of Purchaser: ________________________________________________________

Signature of Authorized Signatory of Purchaser : _________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

 

4

 

 

Exhibit 2.3

AMENDMENT NO. 2 TO SECURITIES PURCHASE AGREEMENT

This Amendment No. 2 to Securities Purchase Agreement (this “Amendment”), dated this 5th day of January, 2018, is made by and among InfoSonics Corporation, a Maryland corporation (the “Company”), and each purchaser identified on the signature pages hereto (the “Purchasers”).

W I T N E S S E T H:

WHEREAS, the Company and the Purchasers are party to a Securities Purchase Agreement, dated August 3, 2017 as amended by the Amendment No. 1 to Securities Purchase Agreement, dated December 31, 2017 (the “Purchase Agreement”);

WHEREAS, the Company and the Purchasers desire to amend the Purchase Agreement as more particularly set forth below;

WHEREFORE, the parties do hereby agree as follows:

1. The definition of “Closing Date” in Section 2.1 of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:

“Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than March 14, 2018.

2. The last paragraph of Section 2.2(b) is hereby amended and restated in its entirety to read as follows:

For the avoidance of doubt, the Purchasers acknowledge and agree that, upon the Purchasers’ funding of the Subscription Amount into the Escrow Account, such subscriptions will be irrevocable and will not be returned to the Purchasers unless the Company fails to satisfy the Closing Conditions set forth in Section 2.2(b) by March 14, 2018.

3. Section 5.1 is hereby amended and restated in its entirety to read as follows:

5.1 Termination.  This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been cons ummated on or before March 14, 2018; provided, however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties).

1

138081200.2


 

4 . Except as modified herein, the terms of t he Purchase Agreement shall remain in full force and effect.

5. This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and shall be binding upon all parties, their successors and assigns, and all of which taken together shall constitute one and the same Amendment.  A signature delivered by facsimile shall constitute an original.

[Signature Page Follows]


2

138081200.2


 

 

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

 

 

InfoSonics Corporation

 

By: /s/ Vernon A. LoForti

Name: Vernon LoForti

Title:    Vice President, Chief Financial Officer    

            and Corporate Secretary

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]


3

138081200.2


 

IN WITNESS WHEREOF, the undersigned have caused th is Amendment to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

Name of Purchaser: ________________________________________________________

Signature of Authorized Signatory of Purchaser : _________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

 

4

138081200.2