EXHIBIT 10.3

PURCHASE AGREEMENT
BETWEEN
CLEARONE, INC.
AND
DIALCOM NETWORKS S.L.
March 31st, 2014

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THIS PURCHASE AGREEMENT (this “Agreement”) is entered into in Madrid, on March
[31], 2014, by and between ClearOne, Inc., a corporation registered in the State
of Utah, United States, represented by Zeyneb Hakimoglu acting as empowered
attorney, (the “Purchaser”), and Dialcom Networks S.L., a Spanish private
limited company, registered with the Zaragoza Trade registry under page Z-30936,
and represented by Enrique Domínguez García acting as empowered attorney (the
“Seller”). Purchaser and Seller are referred to collectively herein as the
“Parties” and individually as a “Party”.

WHEREAS

I.-
On December 20th, 2013, the parties signed a Framework Agreement regulating the
purchase of the so-called “Spontania Business”, by means of which they agreed to
a procedure that was to be concluded with the spin-off and sale of the newly
incorporated company “CLEARONE SPAIN,S.L.”.

II.-
Furthermore, on January 16th, 2014 Dialcom Networks and ClearOne Inc. signed a
loan agreement for an amount of 365,000€ plus a 0.46% monthly interest rate,
hereinafter “the Owed Loan Amount”, in order to cover the operating costs of the
Spontania Business.

Said agreement was passed into a public deed before the Madrid Notary Mr. Angel
Almoguera Gómez, with number 208 of his records, being the Framework Agreement a
part of the same, hereinafter “the Loan Agreement”. Moreover, it was agreed by
the Parties that the referred amount was to be deducted from the final purchase
price.

III.-
On March 3rd, 2014 the company Dialcom Networks, S.L. granted the spin-off deed
before the Madrid Notary Mr. Angel Almoguera Gómez, with number 1090 of his
records. As a result of the same, DIALCOM NETWORKS, S.L. is the owner of
3,650,000 shares, numbered from 1 to 3,650,000 both inclusive, 100% of the
shares, hereinafter “the Shares”, of CLEARONE SPAIN, S.L., a Spanish private
limited company, registered with the Zaragoza Trade registry under page Z-56348,
hereinafter “the Company”.

IV.-
The spin off was registered with the Zaragoza trade registry on March 4 2014
causing the first inscription of the Company’s page.

Taking into consideration all the aforementioned, the Parties being in
agreement, they enter into the present Share Purchase Agreement in accordance
with the following:

CLAUSES

1.-     Purpose    

The Seller transfers to the Purchaser, who acquires, the Shares in the Company
representing one hundred percent of the share capital thereof, free of
encumbrances, charges and third-party rights.    

2.-    Title    

The Seller proves ownership of the Shares being transferred by means of
exhibiting the aforementioned Dialcom Networks, S.L. spin-off public deed
granted on March 3rd, 2014 before the Madrid Notary Mr. Angel Almoguera Gómez,
with number 1.090 of his records, duly registered with the Zaragoza Trade
Registry in which Seller is assigned title to the Shares.

3.-     Purchase Price

In accordance with Clause 2.3 of the Framework Agreement, the purchase price for
the Shares is 3,650,000 € plus the Interim Operating Expense Amount (as adjusted
pursuant to Clause 2.3(a)) minus (i) the accrued and unpaid payrolls of the
Company´s Employees and (ii) the amount of any revenue invoiced by the Seller
with respect to the Spontania

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Business between the date of signing of the Framework Agreement and the date of
signing of the present document. Said amounts are detailed as Annex 1.

 
Therefore, the final Purchase Price for the sale of the Shares amounts to €
3,661,541.58 which is equivalent to 1.003 € per share.

4.-     Closing Deliveries

4.1.-
As established in 2.6 (a) of the Framework Agreement, all Seller Closing
Deliveries are included herewith as Annex 2.

Regarding the non-compete agreements to be signed by certain shareholders of
Dialcom, the Parties agree as established in Annex 2.7 of this Agreement

4.2.-
In turn, as established in 2.6 (b) of the Framework Agreement, all Purchaser
Closing Deliveries are included herewith as Annex 3.

5.-    Payment Of Purchase Price

The established Purchase Price is paid by the Purchaser as follows:

(i)
Identified Creditor Payments. The Seller hereby declares that the creditors
listed in Annex 4, are all the Company´s and/or the Seller´s currently existing
creditors, including the Tax Authorities, Social Security, public
administrations, financial institutions and, in general, any third party
(excluding accrued and unpaid payrolls of the Company´s Employees). To that
respect, the Seller provides duly signed releases, included hereto as Annex 5,
by means of which said creditors declare that all existing debts with the Seller
and/or the Company will be settled once they receive the amounts established in
the same.

As for the debts CDTI and INNPACTO hold against the Seller, the Agreement signed
by the Parties amending the Framework Agreement, included hereto as Annex 6,
will be applicable.
Thus, in accordance with clause 2.3 (b) of the Framework Agreement, the
Purchaser deducts the amount of € 933,910.34 from the purchase price that will
be paid directly to the referred creditors via a wire transfer to their
respective bank accounts.

(ii)
Owed Loan Amount. In accordance with the conditions established in the Loan
Agreement, the Owed Loan Amount is € 368,358 as described in Annex 7. Said
amount is further deducted from the Purchase Price.

(iii)
Escrow. As established in Clause 2.4, an escrow agreement is signed by the
Parties and the Spanish bank BBVA, S.A., included herewith as Annex 8, by means
of which the Purchaser deducts from the Purchase Price and deposits via a wire
transfer to the Escrow Account an amount of 547,500€.

(iv)
Opposed Creditors. The Seller declares and warrants that the only creditors
initially opposing to the spin-off of DIALCOM NETWORKS, S.L. were BANKINTER S.A.
and Elena Álvarez Martín-Ballestero who duly waived their opposition to the
same.

To that respect, the Purchaser deducts from the Purchase Price the respective
amounts of € 237,000 and € 66,393.7 in order to settle the existing debts with
said creditors via appropriate wire transfers to their respective bank accounts.

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(v)
Remaining amount. Taking into consideration the deductions from the Purchase
Price established in points (i) to (iv) of the present clause, the Purchaser
shall pay the remaining amount, that is to say € 1,508,379.54, via a wire
transfer, to the Seller’s bank account. The Seller acknowledges receipt for the
above-mentioned amount. A copy of said wire transfer order is attached hereto as
Annex 9.

6.-     Force Of The Framework Agreement
1.The parties declare the Framework Agreement fully in force without this
document nor the passing of the same into a public deed, being an amendment
thereof.

7.-     Notices
For the notices that the parties have to make in relation to the present deed,
the parties declare that the contents of clause 10.7 of the Framework Agreement
shall be applicable.

8.-     Expenses And Taxes
The fees of the public notary incurred as a consequence of the granting of the
present instrument shall be paid for equally by the Parties.

9.-     Applicable Law And Jurisdiction
With respect to the applicable law and forum, the parties expressly submit to
the provisions of clause 10.8 of the Framework Agreement.

10.-     Foreign Transactions
It is stated that the transfer formalized herein constitutes a foreign
investment in Spain which shall be notified to the General Directorate of Trade
and Investments by means of the appropriate D1-A form which will be delivered to
the Notary passing this document into a public deed.

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IN WITNESS WHEREOF, the Parties on and as of the date first above written.

 
ClearOne, Inc.
 

By
Name: Zeynep Hakimoglu
Title: President & CEO

 
Dialcom Networks S.L.
 
By
Name:Enrique Domínguez García
Title: President & CEO

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ANNEX 1

Initial purchase figure
€ 3,650,000

Interim Operating Expense Amount
€ 240,000

Unpaid Payrolls
€ 26,886.06

Revenue invoiced
€ 201,572.36

Purchase price
€3,661,541.58

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ANNEX 2
SELLER’S CLOSING DELIVERIES

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ANNEX 2.1
A true and correct copy of resolutions of Seller’s Board of Directors approving
the Spin-Off Transaction, this Agreement and the Transaction Documents and the
transactions contemplated hereby and thereby.

This is included within the Spin-off deed.

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ANNEX 2.2

A true and correct copy of resolutions of Seller’s shareholders approving the
Spin-Off Transaction, this Agreement and the Transaction Documents and the
transactions contemplated hereby and thereby, to the extent such is required.

This is included within the Spin-off deed.

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ANNEX 2.3

A counterpart of the Escrow Agreement duly executed by Seller and by the Escrow
Agent.

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ANNEX 2.4

Proof that Newco is the holder of the Spontania Domains and of the transferred
trademarks included in the Spontania IP together with such documents as
necessary to transfer any Spontania IP (the “Intellectual Property
Assignments”).

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ANNEX 2.5

Duly executed counterpart signature page to the Executive Agreements

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ANNEX 2.6

Sealed filing before the Spanish Data Protection Agency requesting the
modification of the name of the data processor of the files currently registered
in the Spanish Data Protection Agency Register, of which the Seller is the
current data processor. The sealed filing shall request the modification of the
name of the data processor from Seller to Newco.

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ANNEX 2.7

Non-Compete Agreement or Side Letter with respect to shareholders and officers
of Seller specified in Schedule 2.6.(a).(vii) of the Framework Agreement, in
form acceptable to the Parties.

To this respect, the Seller provides the original Non-compete agreement signed
by Enrique Dominguez and Marcelo Martínez. Concerning the rest of the
shareholders obliged to produce said documents, the Purchaser waives such
obligation as long as the same sell their shares in Dialcom to Enrique Dominguez
and Marcelo Martínez before 15 days. Concerning all except Javier Marin
Alvarado, who shall hava a 30 day deadline. If such transfer is not made, the
Seller shall pay a penalty of 2,000 € per day until all the referred transfers
are executed. In any case, said sale of shares may be substituted by the signing
of non compete agreements bu said shareholders in the same terms and conditions
as established herein.

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ANNEX 2.8
Certificate to the effect that the representations and warranties set forth in
Article III of the Framework Agreement are true and correct in all material
respects, except that as to (A) such representations and warranties as are
qualified by terms such as “material” and “Material Adverse Effect” and (B) the
Fundamental Representations, such certificate shall state that such
representations and warranties are true and correct in all respects.

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BRING DOWN CERTIFICATE
March 31, 2014
Pursuant to Section 2.6(a)(ix) of the Framework Agreement (the “Agreement”),
entered into as of December 20, 2013, by and between ClearOne, Inc., a
corporation registered in the State of Utah, United States, represented by
Zeyneb Hakimoglu acting as empowered attorney, (the “Purchaser”), and Dialcom
Networks S.L., a Spanish private limited company, registered with the Zaragoza
Trade registry under page Z-30936, and represented by Enrique Domínguez García
acting as empowered attorney (the “Seller”), Seller hereby certifies as follows:
The representations and warranties set forth in Article III of the Agreement are
true and correct in all material respects, except that as to (A) such
representations and warranties as are qualified by terms such as “material” and
“Material Adverse Effect” and (B) the Fundamental Representations, such
representations and warranties are true and correct in all respects.
Seller has performed or complied in all material respects with all covenants and
obligations contained in the Agreement to be performed or complied with by the
undersigned on or prior to the Closing.
Capitalized terms used but not defined herein have the meanings ascribed to them
in the Agreement.
The undersigned signs this certificate effective as of the date indicated above.

Dialcom Networks S.L.
 
By
Name:Enrique Domínguez García
Title: President & CEO

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ANNEX 2.9

Executed documents for assumption of the Office Lease, subject to obtaining any
necessary Consent from landlord.

Copy of the lease agreement signed between Clearone Spain SL and the landlord.

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ANNEX 3
PURCHASER’S CLOSING DELIVERIES

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ANNEX 3.1

A counterpart of the Escrow Agreement duly executed by Purchaser.

INCLUDED AS ANNEX 2.3

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ANNEX 3.2

A counterpart of the Executive Agreements duly executed by the correct party.

INCLUDED AS ANNEX 2.5

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ANNEX 4
IDENTIFIED CREDITORS
1.
Spanish Tax Agency / AEAT                    186.044,7 €

2.
Spanish Social Security / Seguridad Social            96.781,42 €

3.
Banks / Bancos:

a.
BBVA                            241.000 €

b.
Banco Santander                        161,694.16 €

c.
Banco Popular                        248,390.06 €

Total amount debts Identified Creditors: 933.910,34

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ANNEX 5
CREDITORS’ DEBT CERTIFICATES

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ANNEX 6
AMENDMENT ONE TO FRAMEWORK AGREEMENT

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ANNEX 7
OWED LOAN AMOUNT UNDER THE LOAN AGREEMENT
LOAN AMOUNT:                         € 365,000
MONTHLY 0.46% INTEREST (TWO MONTHS)    € 1679 x 2 months = € 3,358
OWED LOAN AMOUNT                    € 368,358

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ANNEX 8
ESCROW AGREEMENT
INCLUDED AS ANNEX 2.3

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ANNEX 9
COPY OF WIRE TRANSFER ORDER