Document:

Exhibit 10.56

 

Execution Version

 

 

 

SECURITIES PURCHASE AGREEMENT

 

BY AND AMONG

 

WECAST NETWORK, INC.,

 

BT CAPITAL GLOBAL LIMITED

 

AND

 

SUN SEVEN STARS MEDIA GROUP LIMITED

 

DATED AS OF JANUARY 31, 2017

 

 

 

    	-i-

     

    

 

SECURITIES PURCHASE AGREEMENT 

 

SECURITIES PURCHASE AGREEMENT,
dated as of January 31, 2017 (this “Agreement”), by and among BT Capital Global Limited, a British Virgin Islands company
(the “Seller”) and a shareholder of Wide Angle Group Limited, a Hong Kong company (“Wide Angle” or the
“Company”), Wecast Network, Inc., a Nevada corporation (“Wecast” or the “Purchaser”) and Sun
Seven Stars Media Group Limited, a Hong Kong company (“Guarantor”).

 

WHEREAS, Seller owns 55%
of the issued and outstanding stock of the Company.

 

WHEREAS, Seller and Purchaser
has entered into that certain Securities Purchase Agreement, for the purchase by Purchaser of Seller’s 100% interest in Sun
Video Group Hong Kong Limited, a Hong Kong corporation (“SVG”), dated January 30, 2017(the “SVG Agreement”).

 

WHEREAS, under the terms
of the SVG Agreement, Seller has guaranteed certain performance thresholds (the “SVG Performance Guarantees”) to be
achieved by SVG and its subsidiaries (the “Sun Video Business”) within 12 months of the closing under the terms of
the SVG Agreement.

 

WHEREAS, the Seller proposes
to sell to the Purchaser, and the Purchaser proposes to buy 55% of the outstanding capital stock of Wide Angle (the “Company
Common Shares”) for the sole consideration of the Purchaser adding Wide Angle to the Sun Video Business and thereby including
the Revenue and Gross Profit (as defined below) from Wide Angle in the calculation of the SVG Performance Guarantees.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which
is hereby acknowledged, the parties hereto agree as follows:

 

Article
1

DEFINITIONS  

 

1.1           Definitions.
As used in this Agreement, and unless the context requires a different meaning, the following terms shall have the meanings set
forth below:

 

“Actions” means
actions, causes of action, suits, claims, complaints, demands, litigations or legal, administrative or arbitral proceedings. “Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person and, for purposes of Section 3.21 only, with respect to any individual, the spouse, parent,
sibling, child, step-child, grandchild, niece or nephew of such individual or the spouse thereof and any trust for the benefit
of such Stockholder or any of the foregoing. For the purposes of this definition, “control” when used with respect
to any specified Person means the power to direct the management and policies of such Person, whether through the ownership of
Voting Securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Agreement”
has the meaning assigned to such term in the Preamble.

 

“Articles of Incorporation”
means the articles of incorporation of the Company, as the same may have been amended and in effect as of the Closing Date.

 

“Beneficially own”
with respect to any securities means having “beneficial ownership” of such securities as determined pursuant to Rule
13d-3 under the Exchange Act, as in effect on the date hereof.

 

“Board of Directors”
means either the board of directors of the Seller or any duly authorized committee thereof.

 

“Business Day”
means any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions in New York City are authorized or
obligated by Law or executive order to remain closed.

 

“Bylaws” means
the bylaws of the Company, as the same may have been amended and in effect as of the Closing Date.

 

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“Claims” means
losses, claims, damages or liabilities, joint or several, Actions or proceedings (whether commenced or threatened).

 

“Closing” has
the meaning assigned to such term in Section 2.2.

 

“Closing Date”
has the meaning assigned to such term in Section 2.2.

 

“Code” means
the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time
to time.

 

“Collective Bargaining
Agreement” has the meaning assigned to such term in Section 3.17(a).

 

“Commission”
means the Securities and Exchange Commission or any similar agency then having jurisdiction to enforce the Securities Act.

 

“Company” has
the meaning assigned to such term in the Preamble.

 

“Company Benefit
Plans” means all employee benefit plans providing benefits to any current or former employee or director of the Company or
any of its Subsidiaries or any beneficiary or dependent thereof that are sponsored or maintained by the Company or any of its Subsidiaries
or ERISA Affiliates or to which the Company or any of its Subsidiaries or ERISA Affiliates contributes or is obligated to contribute,
including without limitation all employee welfare benefit plans within the meaning of Section 3(1) of ERISA, all employee pension
benefit plans within the meaning of Section 3(2) of ERISA, and all bonus, incentive, deferred compensation, vacation, stock purchase,
stock option, restricted stock, severance, termination pay and fringe benefit plans.

 

“Company Common Shares”
means the ordinary shares, par value $100 Hong Kong Dollar per share, of the Company.

 

“Contemplated Transactions”
means the transactions contemplated by this Agreement and the exhibits hereto, including, without limitation, purchase and sale
of the Company Common Shares.

 

“Contractual Obligation”
means, as to any Person, any agreement, undertaking, contract, indenture, mortgage, deed of trust, credit agreement, note, evidence
of indebtedness or other instrument, written or otherwise, to which such Person is a party or by which it or any of its property
is bound.

 

“Decrees” has
the meaning assigned to such term in Section 3.10(a).

 

“Employment Agreement”
means a contract, offer letter or agreement of the Company or any of its Subsidiaries with or addressed to any individual who is
rendering or has rendered services thereto as an employee or consultant, pursuant to which the Company or any of its Subsidiaries
has any actual or contingent liability or obligation to provide compensation and/or benefits in consideration for past, present
or future services.

 

“Encumbrance” means any charge,
claim, community property interest, equitable interest, mortgage, lien, option, warrant, purchase right, pledge, security interest,
right of first refusal, marital or community property interest or restriction of any kind, including any restriction on use, voting
(in the case of any security), transfer, receipt of income or exercise of any other attribute of ownership.

 

“Environmental Claim” means any
claim, action, cause of action, investigation of which the Company or any of its Subsidiaries has knowledge, or written notice
by any Person to the Company or any of its Subsidiaries alleging potential liability (including, without limitation, potential
liability for investigatory costs, cleanup costs, governmental response costs, natural resources damages, property damages, personal
injuries, or penalties) arising out of, based on or resulting from (a) the presence, or release into the environment, of any Material
of Environmental Concern at any location, or (b) circumstances forming the basis of any violation or liability, or alleged violation
or liability, of any Environmental Law.

 

“Environmental Laws”
means all Federal, state, local, and foreign statute, Law, regulation, ordinance, rule, common Law, judgment, order, decree or
other governmental requirement or restriction relating to pollution or protection of human health or the environment (including,
without limitation, ambient air, surface water, ground water, land surface or subsurface strata and natural resources), including,
without limitation, Laws relating to emissions, discharges, releases or threatened

 

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releases of Materials of Environmental Concern,
or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
Materials of Environmental Concern; provided that Environmental Laws does not include the Occupational Safety and Health Act or
any other similar Requirement of Law governing worker safety or workplace conditions.

 

“Equitable Principles”
means applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar Laws affecting creditors’
rights generally from time to time in effect and to general principles of equity, regardless of whether in a proceeding at equity
or at Law.

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder from
time to time.

 

“ERISA Affiliate”
means each entity which is a member of a “controlled group of corporations,” under “common control” or
an “affiliated service group” with the Company or its Subsidiaries within the meaning of Sections 414(b), (c) or (m)
of the Code, or required to be aggregated with the Company or its Subsidiaries under Section 414(o) of the Code, or is under “common
control” with the Company or its Subsidiaries, within the meaning of Section 4001(a)(14) of ERISA.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder by the Commission from
time to time.

 

“FINRA” means
the Financial Industry Regulatory Authority.

 

“GAAP” means
United States generally accepted accounting principles.

 

“Governmental Authority”
means the government of any nation, state, city, locality or other political subdivision of any thereof, and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government or any international regulatory
body or self-regulatory organization having or asserting jurisdiction over a Person, its business or its properties.

 

“Gross Profit”
means Revenue minus cost of goods sold. Gross Profit is calculated before deducting operating expenses, overhead, payroll, taxation,
interest, professional fees, minority interests, and depreciation and amortization, etc.

 

“Indebtedness”
means (a) any consolidated liabilities for borrowed money or amounts owed in excess of $50,000 (other than consolidated trade accounts
payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect
of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet
(or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions
in the ordinary course of business, and (c) the present value of any consolidated lease payments in excess of $50,000 due under
leases required to be capitalized in accordance with GAAP.

 

“Intellectual Property”
has the meaning assigned to such term in Section 3.20.

 

“IRS” means
the Internal Revenue Service.

 

“knowledge of the
Company” means the actual knowledge of the chairman or any executive officer of the Company or any of its Subsidiaries, after
due inquiry of those persons employed by the Company or its Subsidiaries charged with administrative or operational responsibility
for such matter.

 

“Law” means
all Federal, state, local, and foreign statute, law, regulation, ordinance, rule, common law, judgment, order, decree or other
governmental requirement or restriction of all applicable jurisdictions.

 

“Leases” has
the meaning assigned to such term in Section 3.15.

 

“Licenses”
has the meaning assigned to such term in Section 3.10(b).

 

“Lien” means
any mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien (statutory or other), voting or other restriction,
preemptive right or other security interest of any kind or nature whatsoever.

 

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“Material Adverse
Effect” means any material adverse change in or affecting (i) the business, properties, assets, liabilities, operations,
results of operations (financial or otherwise), condition, or prospects of the Company and its Subsidiaries taken as a whole or
(ii) the ability of the Company or any of the Company’s Subsidiaries to consummate the Contemplated Transactions; provided,
however, that none of the following shall be deemed in themselves, either alone or in combination, to constitute, and none of the
following shall be taken into account in determining whether there has been, a Material Adverse Effect: (A) any change in the market
price or trading volume of the capital stock of the Company after the date hereof (B) any changes, events or occurrences in the
United States securities markets which are not specific to the Company, (C) any changes, events, developments or effects resulting
from general economic conditions, which are not specific to the Company or its Subsidiaries and which do not affect the Company
or its Subsidiaries in a materially disproportionate manner and (D) any changes resulting from the execution or announcement of
this Agreement and the Contemplated Transactions.

 

“Material Contracts”
has the meaning assigned to such term in Section 3.12(a).

 

“Materials of Environmental
Concern” means chemicals, pollutants, contaminants, industrial, toxic or hazardous wastes, substances or constituents, petroleum
and petroleum products (or any by-product or constituent thereof), asbestos or asbestos-containing materials, lead or lead-based
paints or materials, PCBs, or radon, or any other materials that are regulated by, or may form the basis of liability under, any
Environmental Law.

 

“NASDAQ” means
The Nasdaq Stock Market Inc.’s National Market System.

 

“NPCL” has
the meaning assigned to such term in Section 4.7.

 

“Net Income”
means Revenue, minus all costs of doing business and non-operating losses, plus non-operating income, as reflected on a company’s
income statement. Costs shall include cost of goods sold, operating expenses, interest, taxes, and minority interests.

 

“NYSE” means
the New York Stock Exchange.

 

“Person” means
a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint-stock company, company,
limited liability company, trust, unincorporated association, Governmental Authority, or any other entity of whatever nature.

 

“Purchaser Board
of Directors” means either the board of directors of the Purchaser or any duly authorized committee thereof.

 

“Purchaser”
has the meaning assigned to such term in the Preamble.

 

“Purchaser Indemnitee”
has the meaning assigned to such term in Section 8.1.

 

“Restricted Period”
has the meaning assigned to such term in Section 5.1(a).

 

“Required Vote”
has the meaning assigned to such term in Section 4.7(b).

 

“Requirement of Law”
means, as to any Person, the certificate of incorporation and bylaws or other organizational or governing documents of such Person,
and any Law (including, without limitation, Laws related to Taxes and Environmental Laws), treaty, rule, regulation, ordinance,
qualification, standard, license or franchise or determination of an arbitrator or a court or other Governmental Authority, including
the NYSE or NASDAQ or any national securities exchange or automated quotation system on which the Company Common Shares are listed
or admitted to trading, in each case applicable to, or binding upon, such Person or any of its property or to which such Person
or any of its property is subject or pertaining to any or all of the transactions contemplated hereby.

 

“Return” has
the meaning assigned to such term in Section 5.1(a)(ix).

 

“Revenue” means
the income generated from sale of goods or services, or any other use of capital or assets, before any costs or expenses are deducted.
Revenue is shown usually as the top item in an income statement from which all charges, costs, and expenses are subtracted to arrive
at net income.

 

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“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder by the Commission from time
to time.

 

Subsidiary” of any
specified Person means any other Person more than 50% of the outstanding voting securities of which is owned or controlled, directly
or indirectly, by such specified Person or by one or more other Subsidiaries of such specified Person, or by such specified Person
and one or more other Subsidiaries of such specified Person. For the purposes of this definition, “voting securities”
means securities which ordinarily have voting power for the election of directors (or other Persons having similar functions),
whether at all times or only so long as no senior class of securities has such voting power by reason of any contingency, or other
ownership interests ordinarily constituting a majority voting interest.

 

“Tax Claim”
has the meaning assigned to such term in Section 5.1(a)(ix).

 

“Tax” or “Taxes”
means any taxes, assessment, duties, fees, levies, imposts, deductions, or withholdings, including income, gross receipts, ad valorem,
value added, excise, real or personal property, asset, sales, use, license, payroll, transaction, capital, net worth and franchise
taxes, estimated taxes, withholding, employment, social security, workers’ compensation, utility, severance, production,
unemployment compensation, occupation, premium, windfall profits, transfer and gains taxes, or other governmental charges of any
nature whatsoever, imposed by any taxing authority of any government or country or political subdivision of any country, and any
liabilities with respect thereto, including any penalties, additions to tax, fines or interest thereon and includes any liability
for Taxes of another Person by Contract, as a transferee or successor, under Treasury Regulation 1.1502 -6 or analogous state,
local or foreign Requirement of Law provision or otherwise.

 

“Voting Securities”
means any class or classes of stock of the Company pursuant to which the holders thereof have the general power under ordinary
circumstances to vote with respect to the election of the Board of Directors, irrespective of whether or not, at the time, stock
of any other class or classes shall have, or might have, voting power by reason of the happening of any contingency.

 

Article
2

PURCHASE AND SALE OF SECURITIES 

 

2.1           Purchase
and Sale of Securities. Subject to the terms set forth herein and in reliance upon the representations set forth below, at
the Closing, the Seller shall sell to the Purchaser the Company Common Shares for the sole consideration of the Purchaser adding
Wide Angle to the Sun Video Business and thereby including the Revenue and Gross Profit from Wide Angle in the calculation of the
Performance Guarantees set forth in the SVG Agreement.

 

2.2           Closing.
Subject to the last sentence of this Section 2.2, the sale and purchase of the Company Common Shares shall take place at a closing
(the “Closing”) to be held at the offices of Cooley LLP, 1114 Avenue of the Americas, New York, New York (except that
the Closing may be conducted as a “virtual closing”, with the parties providing signature pages to each other electronically
or via facsimile), at 10:00 A.M., local time, on the Closing Date. On the first Business Day after the conditions set forth in
Sections 6.1 and 7.1 (other than those to be satisfied on the Closing Date, which shall be satisfied or waived on such date) have
been satisfied or waived by the party entitled to waive such conditions or such later date and time as the parties may agree in
writing (the “Closing Date”), the Purchaser shall (a) make or cause to be made the deliveries applicable to the Purchaser
set forth in Section 7.1, and (b) the Seller shall (i) deliver to the Purchaser the Company Common Shares and (ii) make or cause
to be made the deliveries set forth in Section 6.1.

 

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Article
3

REPRESENTATIONS AND WARRANTIES OF THE SELLER  

 

The Seller and Guarantor
hereby jointly represents and warrants to the Purchaser as follows:

 

3.1           Corporate
Existence and Power.

 

(a)          The
Seller (a) is a corporation duly incorporated, validly existing and in good standing under the Laws of the British Virgin Islands;
and (b) has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement.

 

(b)          The
Guarantor (a) is a corporation duly incorporated, validly existing and in good standing under the Laws of the Hong Kong; and (b)
has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement.

 

(c)          The
Company (a) is a corporation duly incorporated, validly existing and in good standing under the Laws of Hong Kong; (b) has all
requisite corporate power and authority to own and operate its properties, to lease the properties it operates as lessee and to
carry on its business as currently conducted and currently contemplated to be conducted; and (c) has (or will have, as applicable)
all requisite corporate power and authority to execute, deliver and perform its obligations under the Agreement. The Company is
duly qualified to do business as a foreign corporation in, and is in good standing under the Laws of, each jurisdiction in which
the conduct of its business or the nature of the property owned requires such qualification except where the failure to be so qualified
or in good standing, individually or in the aggregate would not be materially adverse to the Company.

 

3.2           Subsidiaries.
Except as set forth on Schedule 3.2, the Company has no Subsidiaries and no interest or investments in any corporation, partnership,
limited liability company, trust or other entity or organization. Each Subsidiary listed on Schedule 3.2 has been duly organized,
is validly existing and in good standing under the Laws of the jurisdiction of its organization, has all requisite corporate (or,
in the case of an entity other than a corporation, other) power and authority to own and operate its properties, to lease the properties
it operates as lessee and to carry on its business as currently conducted and currently contemplated to be conducted, and is duly
qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or the nature
of its properties requires such qualification except where the failure to be so qualified or in good standing, individually or
in the aggregate, has not had and would not be materially adverse to the Company. Except as set forth on Schedule 3.2, all of the
issued and outstanding stock (or equivalent interests) of each Subsidiary set forth on Schedule 3.2 has been duly authorized and
validly issued, is fully paid and non-assessable and is owned by the Company free and clear of any Liens and there are no rights,
options or warrants outstanding or other agreements to acquire shares of stock (or equivalent interests) of such Subsidiary. Schedule
3.2 sets forth the capitalization of each of the Subsidiaries, including the amount and kind of equity interests held by the Company
in the Subsidiary and the percentage interest represented thereby.

 

3.3           Corporate
Authorization; No Contravention. The execution, delivery and performance by the Seller of this Agreement and the consummation
of the transactions contemplated thereby, (a) subject to the satisfaction of the matters described in Section 3.24, have been duly
authorized by all necessary corporate action of the Seller and Company; (b) do not contravene the terms of the Articles of Incorporation
or Bylaws or the organizational documents of the Seller, the Company or their respective Subsidiaries; (c) do not entitle any Person
to exercise any statutory or contractual preemptive rights to purchase shares of capital stock or any equity interest in the Seller
or the Company and (d) subject to receipt or satisfaction of the approvals, consents, exemptions, authorizations or other actions,
notices or filings set forth on Schedule 3.4, and do not violate or result in any breach or contravention of, a default under,
or an acceleration of any obligation under or the creation (with or without notice, lapse of time or both) of any Lien under, result
in the termination or loss of any right or the imposition of any penalty under any Contractual Obligation of the Seller or the
Company or its Subsidiaries or by which their respective assets or properties are bound or any Requirement of Law applicable to
the Seller, the Company or its Subsidiaries or by which their respective assets or properties are bound. No event has occurred
and no condition exists which (upon notice or the passage of time or both) would constitute, or give rise to: (i) any breach, violation,
default, change of control or right to cause the Seller or the Company to repurchase or redeem under, (ii) any Lien on the assets
of the Seller, the Company or any of its Subsidiaries under, (iii) any termination right of any party, or any loss of any right
or imposition of any penalty, under or (iv) any change or acceleration in the rights or obligations of any party under, any material
Contractual Obligation of the Seller, the Company or its Subsidiaries (or by which their respective assets or properties are bound)
or the Articles of Incorporation or Bylaws or the organizational documents of the Company’s Subsidiaries except for any of
the foregoing that, individually or in the aggregate, would not be material to the Company or its Subsidiaries.

 

3.4           Governmental
Authorization; Third Party Consents. Except as set forth on Schedule 3.4, no approval, consent, qualification, order, exemption,
authorization or other action by, or notice to, or filing with, any Governmental Authority, or any other Person in respect of any
Requirement of Law, Contractual Obligation or otherwise, and no lapse of a waiting period under a Requirement of Law, is necessary
or required in connection with the execution, delivery or performance (including, without limitation, sale and delivery of the
Company Common Shares by the Seller, or enforcement against the

 

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Seller or the Company, of the Agreement or the consummation of
the Contemplated Transactions except for any of the foregoing that, individually or in the aggregate, would not be material to
the Seller, the Company or its Subsidiaries.

 

3.5           Binding
Effect. The Agreement has been (or will, as of the Closing, be, as applicable) duly authorized, executed and delivered by the
Seller and, subject to Equitable Principles, constitutes (or will, as of the Closing, constitute, as applicable) the legal, valid
and binding obligation of the Seller enforceable against the Seller in accordance with its terms.

 

3.6           Capitalization
of the Company and its Subsidiaries. The authorized stock of the Company consists of 143,500 ordinary shares. There are no
ordinary shares or any other equity security of the Company issuable upon conversion or exchange of any security of the Company
or any of its Subsidiaries nor any rights, options or warrants outstanding or other agreements to acquire shares of stock of the
Company or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries is contractually obligated to issue any shares
of stock or to purchase, redeem or otherwise acquire any of its outstanding shares of stock. Neither the Company nor any of its
Subsidiaries has created any “phantom stock,” stock appreciation rights or other similar rights the value of which
is related to or based upon the price or value of the ordinary shares. Neither the Company nor any of its Subsidiaries has outstanding
debt or debt instruments providing for voting rights with respect to the Company or such Subsidiary to the holders thereof. No
stockholder of the Company or any of its Subsidiaries or other Person is entitled to any preemptive or similar rights to subscribe
for shares of stock of the Company or any of its Subsidiaries. All of the issued and outstanding shares of Company Common Shares
are duly authorized, validly issued, fully paid, and nonassessable. Neither the Company nor any of its Subsidiaries has granted
to any Person the right to demand or request that the Company or such Subsidiary effect a registration under the Securities Act
of any securities held by such Person or to include any securities of such Person in any such registration by the Company or such
Subsidiary.

 

3.7           Ownership
of Company Common Shares. The Seller owns, beneficially and of record, 55% of the Company Common Shares free and clear of all
Encumbrances (other than transfer restrictions arising under applicable Law). Seller does not own the Company Common Shares jointly
with any other Person, and no other Person has any right to consent to or vote upon the transactions contemplated by this Agreement.
There is no agreement that requires a Seller or the Company to sell, issue or purchase any of the Company Common Shares or other
securities of the Company. At Closing, Seller will transfer to Purchaser valid title to the Company Common Shares free and clear
of all Encumbrances (other than transfer restrictions arising under applicable Law).

 

3.8           Absence
of Certain Developments. Since December 31, 2011, (a) each of the Company and its Subsidiaries has operated in the ordinary
course, (b) there has been no occurrence or event of the type set forth in Section 5.1(a), and there has occurred no fact, event,
circumstance or development that, individually or in the aggregate, has had or would reasonably be expected to have a Material
Adverse Effect.

 

3.9           Indebtedness;
No Undisclosed Liabilities. Schedule 3.9 sets forth the Indebtedness of the Company. Neither the Company nor any of its Subsidiaries
has any material liabilities or obligations of any nature, whether or not accrued, contingent or otherwise, except (a) as set forth
on Schedule 3.9, and (b) liabilities incurred in connection with the Contemplated Transactions that are not in breach of this Agreement.

 

3.10         Compliance
with Laws; Licenses.

 

(a)          Neither
the Company nor any of its Subsidiaries in the conduct of its business, is, or since December 31, 2011, has been, in violation
of any Requirement of Law, or any judgments, orders, rulings, injunctions or decrees of a Governmental Authority (collectively,
“Decrees”), applicable thereto or to the employees conducting such business, except for violations that, individually
or in the aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect.

 

(b)          The
Company and its Subsidiaries as applicable, have obtained or made, as the case may be, all permits, licenses, authorizations, orders
and approvals, and all filings, applications and registrations with, all Governmental Authorities (“Licenses”), that
are required to conduct the businesses of the Company and its Subsidiaries in the manner and to the full extent as currently conducted
or currently contemplated to be conducted except where such failure to obtain or make, individually or in the aggregate, would
not be materially adverse to the Company. None of such Licenses is subject to any restriction or condition that limits or would
reasonably be expected to limit in any material way the full operation of the Company or its Subsidiaries as currently conducted
or currently contemplated to be conducted. Each of the Licenses has been duly obtained, is valid and in full force and effect,
and is not subject to any pending or threatened proceeding to limit, condition, suspend, cancel, suspend, or declare such License
invalid. Neither the Company nor any of its Subsidiaries is in default in any

 

    	 	7	 

     

    

 

material respect with respect to any of the Licenses,
and to the knowledge of the Company no event has occurred which constitutes, or with due notice or lapse of time or both may constitute,
a default by the Company or any such Subsidiary under any License.

 

3.11         Litigation.
There is no legal action, suit, arbitration, proceeding or, to the knowledge of the Company, other legal, administrative or other
governmental investigation or inquiry pending or claims asserted (or, to the knowledge of the Company, any threat thereof) against
the Company or any of its Subsidiaries or relating to the Agreement or the Contemplated Transactions or against any officer, director
or employee of the Company in connection with such Person’s relationship with or actions taken on behalf of the Company.
The Company is not subject to any Decree that, individually or in the aggregate, has had or would reasonably be expected to be
material to the Company.

 

3.12         Material
Contracts.

 

(a)          Schedule
3.12(a) sets forth a true, correct and complete list of the following Contractual Obligations (including every written amendment,
modification or supplement to the foregoing or other material amendment, modification or supplement to the foregoing that is binding
on the Company or any of its Subsidiaries) to which the Company or any of its Subsidiaries is a party: (i) any Contractual Obligation
that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Commission), (ii)
Contractual Obligations that collectively represent the top 5 agreements (based on cost) with content licensors for the Company
and its Subsidiaries during the Company’s last fiscal year, (iii) Contractual Obligations that collectively represent the
top 5 agreements (based on revenue) for distribution services and cooperation agreements of the Company and its Subsidiaries during
the Company’s last fiscal year, (iv) any Contractual Obligation (other than a Contractual Obligation described in one of
the other provisions of this Section 3.12(a) without regard to any threshold contained therein) that involves annual expenditures
during the Company’s last fiscal year by the Company or any Company Subsidiary in excess of $200,000 and is not otherwise
cancelable by the Company or any of its Subsidiaries without any financial or other penalty on 90-days’ or less notice, (v)
any Lease for real property or (vi) any other Contractual Obligation that is material to the Company or its Subsidiaries (each
Contractual Obligation referenced above in clauses (i) through (vi) individually, a “Material Contract” and collectively,
“Material Contracts”); provided that, with respect to Company Material Contracts described above, such list shall identify
the date of such contract and any communications (written or, to the knowledge of the Company, oral) received by the Company or
its Subsidiaries from any party to such contract or on behalf of any such party that such party intends to cancel, terminate, seek
re-bidding of or fail to renew such contract. Except as set forth on Schedule 3.12(a), the Company has delivered or made available
true, correct and complete copies of all such Contractual Obligations to counsel to Purchaser.

 

(b)          All
of the Material Contracts are valid, binding and in full force and effect in all material respects and enforceable by the Company
in accordance with their respective terms in all material respects, subject to Equitable Principles. The Company is not in material
default or breach under any of its Contractual Obligations or organizational documents and, to the knowledge of the Company, no
other party to any of its Contractual Obligations is in material default or breach thereunder (and no event has occurred which
with the passage of time or the giving of notice or both would result in a material default or breach by the Company or, to the
knowledge of the Company, by any other party thereunder). Except as set forth on Schedule 3.12(b), neither the Company nor any
of its Subsidiaries is a party to any non-competition agreement or any other agreement or obligation that materially limits or
will materially limit the Company or any of its Subsidiaries from engaging in any line of business in any territory.

 

3.13         Environmental.
The Company and its Subsidiaries are, and have been, in compliance with all Environmental Laws, except where such non-compliance,
individually or in the aggregate, has not had and would not reasonably be expected to be materially adverse to the Company. Neither
the Company nor any of its Subsidiaries has received any written notice that alleges that the Company or its Subsidiaries is not
in compliance with any Environmental Laws, and to the knowledge of the Company, there are no circumstances that could reasonably
be expected to prevent or interfere with such compliance in the future. There is no Environmental Claim pending, or to the knowledge
of the Company, threatened against the Company or any of its Subsidiaries with respect to the operations or business of the Company
or its Subsidiaries, or against any Person whose liability for any Environmental Claim the Company or its Subsidiaries has retained
or assumed either contractually or by operation of Law. There has been no release at any time of any Materials of Environmental
Concern at, on, about, under or within any real property currently, or to the knowledge of the Company, formerly owned, leased,
operated or controlled by the Company or any of its Subsidiaries or any of their predecessors.

 

3.14         Taxes.
All Returns required to be filed by the Company and each of its Subsidiaries have been timely filed (after giving effect to any
valid extensions of time in which to make such filings) and all such Returns are true, complete, and

 

    	 	8	 

     

    

 

correct in all material respects.
All Taxes that are due or claimed to be due from the Company and each of its Subsidiaries have been timely paid, other than those
(i) currently payable without penalty or interest or (ii) being contested in good faith and by appropriate proceedings and for
which, in the case of both clauses (i) and (ii), adequate reserves have been established on the books and records of the Company
and its Subsidiaries in accordance with GAAP. There are no proposed, asserted, ongoing or to the knowledge of the Company, threatened,
assessments, examinations, claims, deficiencies, Liens or other litigation with regard to any Taxes or Returns of the Company or
any of its Subsidiaries. To the knowledge of the Company, the accruals and reserves on the books and records of the Company and
its Subsidiaries in respect of any Tax liability for any taxable period not finally determined are adequate to meet any assessments
of Tax for any such period. The Company is not a United States real property holding corporation as defined in Section 897(c)(2)
of the Code. The Company and each of its Subsidiaries are not currently the beneficiary of any extension of time within which to
file any Tax Return. All material amounts required to be collected or withheld by the Company or any of its Subsidiaries have been
collected or withheld and any such amounts that are required to be remitted to any taxing authority have been duly and timely remitted.
Neither the Company nor any of its Subsidiaries has waived any statute of limitations in respect of Taxes or agreed to any extension
of time with respect to a Tax assessment or deficiency. No taxing authority in a jurisdiction where the Company or its Subsidiaries
do not file Tax Returns has made a written claim or assertion that the Company or its Subsidiaries are or may be subject to taxation
by such jurisdiction. The Company and each of its Subsidiaries is not a party to or bound by any Tax sharing or Tax allocation
or similar Contractual Obligation. True and complete copies of all income Tax Returns that have been filed by the Company or any
of its Subsidiaries for Tax periods after December 31, 2008 have been delivered or made available to the Purchaser. The Company
and each of its Subsidiaries (A) has not been a member of an affiliated group filing a consolidated federal income Tax Return (other
than a group of which the Company was the common parent) or (B) does not have any liability for the Taxes of any Person (other
than the Company) under Treasury Regulation ss. 1.1502 -6 (or any similar provision of state, local, or foreign Requirement of
Law), as a transferee or successor, by contract, or otherwise. The Company and each of its Subsidiaries has not agreed, and is
not required to include in income any adjustment pursuant to Section 481(a) of the Code (or analogous provision of foreign, state,
or local Requirement of Law) by reason of a change in accounting method or otherwise, and the Company and each of its Subsidiaries
does not have knowledge that the Internal Revenue Service (or other taxing authority) has proposed or is considering any such change
in accounting. The Company and each of its Subsidiaries will not be required to include any item of income in, or exclude any item
of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any:
(A) “closing agreement” as described in Code ss. 7121 (or any corresponding or similar provision of state, local or
foreign income Tax Requirement of Law) executed on or prior to the Closing Date; (B) installment sale or open transaction disposition
made on or prior to the Closing Date; or (C) prepaid amount received on or prior to the Closing Date.

 

3.15         Title
to Property and Assets; Leases. Except as set forth on Schedule 3.15, each of the Company and its Subsidiaries has good and
marketable title, free and clear of all Liens to all of its assets, including all real property and interests in real property
owned in fee simple by the Company and its Subsidiaries and all real property leased, subleased or otherwise occupied by the Company
and its Subsidiaries and any assets and properties which it purports to own, except (i) Liens for taxes not yet due and payable
and (ii) Liens that do not interfere with the use, utility or value of such assets in any material respect. All leases to which
the Company or any of its Subsidiaries is a party (collectively, the “Leases”) are valid and binding and in full force
and effect in accordance with their respective terms on the Company and its Subsidiaries and, to the knowledge of the Company,
with respect to each other party to any such Leases, except, in each case, subject to Equitable Principles. No material default
(or event which, with the giving of notice or passage of time, or both, would constitute a material default) by the Company or
any of its Subsidiaries, or to the knowledge of the Company by any other party thereto, has occurred and is continuing under the
Leases. The Company and its Subsidiaries enjoy a peaceful and undisturbed possession under all such Leases to which any of them
is a party as lessee. With respect to each Lease, to the knowledge of the Company, either (a) such Lease is not subject or subordinate
to any mortgage, deed of trust or other lien which has priority over such Lease, or (b) the holder of any such lien has entered
into a valid, binding and enforceable nondisturbance agreement in favor of the lessee pursuant to which the Lease cannot be extinguished
or terminated by reason of any foreclosure or other acquisition of title by such holder if the lessee thereunder is not in default
under the Lease as of the date of acquisition of title. As used herein, the term “Lease” shall also include subleases
or other occupancy agreements (and any amendments thereto) and the term “lessee” shall also include any sublessee or
other occupant. Neither the Company nor any of its Subsidiaries own any real property.

 

3.16         Compliance
with ERISA. Except as set forth on Schedule 3.16, the Company has made available to the Purchaser true and complete copies
of each Employment Agreement and each material Company Benefit Plan, as well as certain related documents, including, but not limited
to, (a) the actuarial report for such Company Benefit Plan (if applicable) for each of the last two years, (b) the most recent
determination letter from the IRS (if applicable) for such Company Benefit Plan, (c) the two most recent annual reports (Series
5500 and related schedules) required under ERISA (if any), (d) the most recent summary plan descriptions (with all material modifications)
and (e) all material communications to any current or former

 

    	 	9	 

     

    

 

employees of the Company relating to any material Company Benefit
Plan or Employment Agreement. Except as would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect: (A) each of the Company Benefit Plans has been operated and administered in all material respects in compliance
with its terms and all applicable Laws; (B) each of the Company Benefit Plans intended to be “qualified” within the
meaning of Section 401(a) of the Code is so qualified; and (C) there are no pending, or to the knowledge of Company, threatened
claims (other than routine claims for benefits) by, on behalf of or against any of the Company Benefit Plans or any trusts related
thereto or pursuant to any Employment Agreement. Neither the Company nor any ERISA Affiliate currently sponsors, maintains or contributes
to, and is not required to contribute to, nor has ever sponsored, maintained or contributed to, and been required to contribute
to, or incurred any liability with respect to any “employee benefit plan” (within the meaning of Section 3(3) of ERISA)
that is subject to Section 302 of the Code or Title IV of ERISA. No non-exempt “prohibited transaction,” within the
meaning of Section 4975 of the Code or Section 406 of ERISA, has occurred with respect to any Company Benefit Plan which could,
individually or in the aggregate, reasonably be expected to result in a material liability to the Company. No material liability
under any Company Benefit Plan has been funded nor has any such obligation been satisfied with the purchase of a contract from
an insurance company as to which the Company has received notice that such insurance company is insolvent or is in rehabilitation
or any similar proceeding. No Company Benefit Plan is under audit or, to the knowledge of the Company, investigation by, or is
the subject of a proceeding with respect to, the IRS, the Department of Labor or the Pension Benefit Guaranty Corporation, and,
to the knowledge of the Company, no such audit, investigation or proceeding is threatened. Except as set forth on Schedule 3.16,
with respect to each Company Benefit Plan which provides medical benefits, short-term disability benefits or long-term disability
benefits (other than any “pension plan” within the meaning of Section 3(2) of ERISA), all claims incurred by the Company
under such Company Benefit Plan are either insured pursuant to a contract of insurance whereby the insurance company bears any
risk of loss with respect to such claims or covered under a contract with a health maintenance organization pursuant to which such
health maintenance organization bears the liability for such claims. Except as set forth on Schedule 3.16 hereto, neither the execution
and delivery of this Agreement nor the consummation of the transactions contemplated hereby will (either alone or in conjunction
with any other event such as termination of employment) (i) result in, or cause any increase, acceleration or vesting of, any payment,
benefit or award under any Company Benefit Plan or Employment Agreement to any director or employee of Company or any of its Subsidiaries,
(ii) give rise to any obligation to fund for any such payments, awards or benefits, (iii) give rise to any limitation on the ability
of the Company or any of its Subsidiaries to amend or terminate any Company Benefit Plan, or (iv) result in any payment or benefit
that will or may be made by the Company or any of its Subsidiaries or affiliates that will be characterized as an “excess
parachute payment,” within the meaning of Section 280G of the Code. Except as set forth on Schedule 3.16, neither the Company
nor any of its Subsidiaries or ERISA Affiliates has any liability to provide any post-retirement or post-termination life, health,
medical or other welfare benefits to any current or former employees or beneficiaries or dependents thereof which, individually
or in the aggregate, is material, except for health continuation coverage as required by Section 4980B of the Code or Part 6 of
Title I of ERISA or applicable state healthcare continuation coverage Laws which, individually or in the aggregate, is at no material
expense to the Company and its Subsidiaries. With respect to each Company Benefit Plan, there are no understandings, agreements
or undertakings that would prevent the Company from amending or terminating such Company Benefit Plan at any time without incurring
material liability thereunder other than in respect of accrued obligations and medical or welfare claims incurred prior to such
amendment or termination.

 

3.17         Labor
Relations; Employees.

 

(a)          (i)
Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement, labor union contract, or trade
union agreement (each a “Collective Bargaining Agreement”), (ii) to the knowledge of the Company, there are no activities
or proceedings of any labor or trade union to organize any employees of the Company or any of its Subsidiaries; (iii) no Collective
Bargaining Agreement is being negotiated by the Company or any of its Subsidiaries, (iv) there is no strike, lockout, slowdown,
or work stoppage against the Company or any of its Subsidiaries pending or, to the knowledge of the Company, threatened that may
interfere with the respective business activities of the Company or any of its Subsidiary.

 

(b)          The
Company and its Subsidiaries have complied in all material respects with applicable Laws with respect to employment (including
but not limited to applicable Laws regarding wage and hour requirements, correct classification of independent contractors and
of employees as exempt and non-exempt, immigration status, discrimination in employment, employee health and safety, and collective
bargaining).

 

(c)          The
Company and each of its Subsidiaries have withheld all amounts required by applicable Law to be withheld from the wages, salaries,
and other payments to employees, and are not, to the knowledge of the Company, liable for any arrears of wages or any taxes or
any penalty for failure to comply with any of the foregoing. Neither the Company nor any of its Subsidiaries is liable for any
material payment to any trust or other fund or to any Governmental Authority, with

 

    	 	10	 

     

    

 

respect to unemployment compensation benefits,
social security or other benefits for employees (other than routine payments to be made in the ordinary course of business consistent
with past practice).

 

3.18         Certain
Payments. Neither the Company nor any Subsidiary nor, to the knowledge of the Company, any director, officer, agent, employee,
or other Person associated with or acting on behalf of any of them, has directly or indirectly (a) made any contribution, gift,
bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private or public, regardless of form, whether
in money, property, or services (i) to obtain favorable treatment in securing business, (ii) to pay for favorable treatment for
business secured, (iii) to obtain special concessions or for special concessions already obtained, for or in respect of the Company
or any Subsidiary or any Affiliate of the Company or any Subsidiary, or (iv) in violation of any Requirement of Law, or (b) established
or maintained any fund or asset that has not been recorded in the books and records of the Company.

 

3.19         Insurance.
The Company and its Subsidiaries maintain, with financially sound and reputable insurers, insurance in such amounts, including
deductible arrangements, and of such a character as is, in the judgment of the Board of Directors, reasonable in light of the risks
faced by the Company in the conduct of its business. All policies of title, fire, liability, casualty, business interruption, workers’
compensation and other forms of insurance including, but not limited to, directors and officers insurance, held by the Company
and its Subsidiaries, are in full force and effect in accordance with their terms. Neither the Company nor any of its Subsidiaries
is in default in any material respect under any provisions of any such policy of insurance that has not been remedied and no such
Person has received notice of cancellation of any such insurance.

 

3.20         Intellectual
Property. The Company and its Subsidiaries own the entire and unencumbered right, title and interest in and to, or possess
adequate licenses or other rights to use, all intellectual property, including but not limited to, patents, trademarks, service
marks, trade names, trade secrets, copyrights, domain names, computer software (including but not limited to code, data, databases
and documentation) and know-how used in, or necessary to, the business as currently conducted or currently contemplated to be conducted
by the Company or any of its Subsidiaries (the “Intellectual Property”) except where such failure to so own or possess,
individually or in the aggregate, has not had and would not reasonably be expected to have a Material Adverse Effect. All Intellectual
Property which is a material patent, trademark, service mark, trade name, copyright or domain name is set forth on Schedule 3.20.
The Company and each of its Subsidiaries have performed all commercially reasonable acts to protect and maintain its material Intellectual
Property, including but not limited to paying all required fees and Taxes to maintain all registrations and applications of such
Intellectual Property in full force and effect. Except as set forth on Schedule 3.20, none of the Company or any of its Subsidiaries
has received any written notice of infringement of or conflict with (or knows of such infringement of or conflict with) asserted
rights of others with respect to the use of Intellectual Property. To the knowledge of the Company, the Company and its Subsidiaries
do not in the conduct of their business infringe or conflict with any right of any third party. Except as set forth on Schedule
3.20, neither the Company nor any of its Subsidiaries have asserted within two years of the date hereof, any claim against any
third party that such party has violated, infringed, misappropriated or misused, in any material respect, any Intellectual Property.
The Company and its Subsidiaries have taken commercially reasonable precautions to preserve and protect the availability, confidentiality,
security and integrity of data held or transmitted by or through the Company and its Subsidiaries’ computer networks, software,
hardware, and other systems.

 

3.21         Affiliate
Transactions.

 

(a)          Except
for transactions described on Schedule 3.21(a) and the Contemplated Transactions, (i)(w) no current officer, director or employee
of the Company or any of its Subsidiaries, (x) to the knowledge of the Company, no former officer, director or employee of the
Company or any of its Subsidiaries, (y) to the knowledge of the Company, no Affiliate or associate of any current officer, director
or employee of the Company or any of its Subsidiaries and (z) to the knowledge of the Company, no Affiliate or associate of any
former officer, director or employee of the Company or any of its Subsidiaries has, directly or indirectly, any interest in any
contract, arrangement or property (real or personal, tangible or intangible) used by the Company or any such Subsidiary or in their
respective businesses, or in any supplier, distributor or customer of the Company or any such Subsidiary (other than indirectly
through such Person’s ownership of the securities of a corporation whose stock is traded on a national securities exchange
or in the over-the-counter market and less than one percent (1%) of the stock of such corporation is beneficially owned by such
Person) and (ii) neither the Company nor any of its Subsidiaries shares any assets, rights or services with any entity that is
controlled by any current officer, director or employee of the Company or any of its Subsidiaries or, to the knowledge of the Company,
by any former officer, director or employee of the Company or any of its Subsidiaries.

 

    	 	11	 

     

    

 

(b)          Except
as set forth on Schedule 3.21(b), each ongoing intercompany transaction set forth on Schedule 3.21(a) is on terms that are (i)
consistent with the past practice of the Company and (ii) at least as favorable in the aggregate for such transaction to the Company
as would be available with independent third parties dealing at arms’ length.

 

3.22         Investment
Company Act. Neither the Company nor any of its Subsidiaries is, and, after giving effect to consummation of the transactions
contemplated hereby and by the Agreement, will be, an “investment company” or an entity “controlled by”
an “investment company” (as such terms are defined in the Investment Company Act of 1940, as amended).

 

3.23         Board
Approval; Stockholder Approval. The Board of Directors at a meeting duly called and held has unanimously determined the Contemplated
Transactions to be advisable and in the best interests of the Seller and its stockholders and has approved the Contemplated Transactions.
To the extent approval by the Seller’s stockholders is necessary in connection with the execution and delivery of the Agreement
or the consummation of the Contemplated Transactions, such approval has been obtained.

 

3.24         Securities.
The Company Common Shares, when issued and delivered in accordance with the terms of this Agreement, will be duly and validly issued
and outstanding, fully paid and nonassessable and free and clear of any Liens (other than any Liens granted by any Purchaser),
not subject to preemptive or other similar rights, and constitute valid and legally binding obligations of the Seller, enforceable
against the Seller in accordance with their terms

 

3.25         No
Brokers or Finders. No agent, broker, finder, or investment or commercial banker or other Person (if any) engaged by or acting
on behalf of the Company or any Subsidiary or Affiliate is or will be entitled to any brokerage or finder’s or similar fee
or other commission as a result of the Agreement or the Contemplated Transactions.

 

3.26         Disclosure.
Neither this Agreement nor any certificate, instrument or written statement furnished or made to Purchaser by or on behalf of the
Seller or the Company in connection with the transactions contemplated by this Agreement contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements contained herein and therein in light of the circumstances
under which they were made not misleading.

 

3.27         Suitability.
Neither the Company nor any of its directors, officers, Subsidiaries or, to the knowledge of the Company, other Affiliates (a)
has ever been convicted of or, to the knowledge of the Company since December 31, 2002, indicted for any felony or any crime involving
fraud, misrepresentation or moral turpitude, (b) is subject to any Decree barring, suspending or otherwise limiting the right of
the Company or such Person to engage in any activity or (c) has ever been denied any License affecting the Company’s or such
Person’s ability to conduct any activity currently conducted or currently contemplated to be conducted by the Company, nor,
to the knowledge of the Company, is there any basis upon which such License may be denied.

 

Article
4

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER  

 

Purchaser hereby represents
and warrants to the Seller as follows with respect that Purchaser:

 

4.1           Existence
and Power. The Purchaser (a) is duly organized and validly existing under the Laws of the State of Nevada and (b) has all requisite
power and authority to execute, deliver and perform its obligations under the Agreement.

 

4.2           Authorization;
No Contravention. The execution, delivery and performance by the Purchaser of the Agreement to which it is a party and the
Contemplated Transactions (a) have been duly authorized by all necessary corporate or other action, (b) do not contravene the terms
of the Purchaser’s organizational documents, and (c) do not violate, conflict with or result in any breach or contravention
of, or the creation of any Lien under, any Contractual Obligation of the Purchaser or any Requirement of Law applicable to the
Purchaser, except for such violations, conflicts, breaches or Liens which, individually or in the aggregate, have not had and would
not reasonably be expected to have a material adverse effect on the Purchaser’s ability to consummate the Contemplated Transactions.

 

4.3           Governmental
Authorization; Third Party Consents. Except as listed in Schedule 4.3 or, individually or in the aggregate, as has not had
and would not reasonably be expected to have a material adverse effect on the Purchaser’s legal power or ability to purchase
or own the Company Common Shares and exercise the rights incident thereto, no approval, consent,

 

    	 	12	 

     

    

 

exemption, authorization, or other
action by, or notice to, or filing with, any Governmental Authority or any other Person in respect of any Requirement of Law, and
no lapse of a waiting period under a Requirement of Law, is necessary or required in connection with the execution, delivery or
performance by the Purchaser, or enforcement against the Purchaser, of this Agreement or the consummation of the Contemplated Transactions.

 

4.4           Binding
Effect. This Agreement has been duly executed and delivered by the Purchaser and, subject to Equitable Principles, constitutes
the legal, valid and binding obligation of the Purchaser, enforceable against it in accordance with its terms.

 

4.5           Receipt
of Information. The Purchaser represents that it has had an opportunity to ask questions and receive answers and documents
from the Seller regarding the business, properties, prospects and financial condition of the Company and concerning the terms and
conditions of the offering of the Company Common Shares.

 

4.6           Board
Approval. The Purchaser Board of Directors, as well as the Audit Committee of the Purchaser Board of Directors, at meetings
duly called and held has unanimously determined the Contemplated Transactions to be advisable and in the best interests of the
Purchaser and its stockholders and has approved the Contemplated Transactions. No approval by the holders of any shares of stock
of the Purchaser is required in connection with the execution or delivery of the Agreement or the consummation of the Contemplated
Transactions, and there are no rules and regulations prohibiting the Agreement and the Contemplated Transactions, whether pursuant
to the NPCL, the Articles of Incorporation or Bylaws, the rules and regulations of the FINRA, NASDAQ or otherwise.

 

4.7           No
Brokers or Finders. Except as contemplated by this Agreement, no agent, broker, finder, or investment or commercial banker
or other Person (if any) engaged by or acting on behalf of the Purchaser or any of its Affiliates is or will be entitled to any
brokerage or finder’s or similar fee or other commission as a result of this Agreement or the Contemplated Transactions.

 

4.8           Litigation.
There is no legal action, suit, arbitration or other legal, administrative or other governmental investigation, inquiry, proceeding
or other Actions pending or, to the knowledge of the Purchaser, threatened against or affecting the Purchaser or relating to any
of the Agreement or the Contemplated Transactions which, if determined adversely to the Purchaser, individually or in the aggregate,
has had or would reasonably be expected to have a material adverse effect on the Purchaser’s ability to consummate the Contemplated
Transactions. The Purchaser is not subject to any Decree that, individually or in the aggregate, has had or would reasonably be
expected to have a material adverse effect on the Purchaser’s ability to consummate the Contemplated Transactions.

 

Article
5

COVENANTS  

 

5.1           Conduct
of Business.

 

(a)          Except
as expressly contemplated by this Agreement or consented to in writing by the Purchaser, from the date hereof through the earlier
of (i) the Closing Date, and (ii) termination of this Agreement (the “Restricted Period”), the Company and its Subsidiaries
shall conduct their businesses in the ordinary course, consistent with past practice and generally in a manner such that the representations
and warranties contained in Article 3, to the extent such matters are within the Company’s or any of its Subsidiary’s
control, shall continue to be true and correct in all material respects on and as of the Closing Date (except for representations
and warranties made as of a specific date) as if made on and as of the Closing Date. The Seller shall give the Purchaser prompt
notice of any event, condition or circumstance known or that becomes known to the Seller or the Company occurring during the Restricted
Period that would constitute a violation or breach of (i) any representation or warranty, whether made as of the date hereof or
as of the Closing Date, or (ii) any covenant of the Seller or the Company contained in this Agreement; provided, however, that
no such notification shall relieve or cure any such breach or violation of any such representation, warranty or covenant or otherwise
affect the accuracy of any such representation or warranty for the purposes of Section 6.1. Without limiting the generality of
the foregoing, except as otherwise expressly contemplated by the terms of this Agreement or agreed in writing by the Purchaser
during the Restricted Period, the Company shall not, and will cause its Subsidiaries not to:

 

(i)          
make a capital expenditure of more than $50,000 except (x) pursuant to agreements or commitments entered into by the Company or
any of its Subsidiaries prior to the date hereof and included on Schedule 3.12(a), except as set forth on Schedule 5.1(a)(i);

 

    	 	13	 

     

    

 

(ii)         enter
into any or amend any Contractual Obligation, other than in the ordinary course of business, or, in any event, involving more than
$50,000 except as set forth on Schedule 5.1(a)(ii);

 

(iii)        except
as set forth on Schedule 5.1(a)(iii), enter into, modify, make, renew, extend or otherwise alter any credit agreement, note or
other similar agreement (including any interest rate or currency swap, hedge, collar or straddle or similar transaction) or instrument
to which the Company or a Subsidiary is a party or incur or otherwise become liable with respect to any indebtedness which, in
the aggregate, exceeds $50,000, other than trade payables incurred in the ordinary course of business and consistent with past
practice;

 

(iv)        enter
into any Contractual Obligation with respect to the acquisition of any material business, assets or property (real, personal or
mixed, tangible or intangible, including stock or other equity interests in, or evidences of the indebtedness of, any other corporation,
partnership or entity);

 

(v)         form
any joint venture or partnership;

 

(vi)        sell,
lease, license, surrender, relinquish, encumber, pledge, transfer, amend, convey or otherwise dispose of any business, property
or assets (whether tangible or intangible) having a material market value;

 

(vii)       fail
to maintain any material property of the Company or any of its Subsidiaries in customary repair, order and condition consistent
with the Company’s or such Subsidiary’s current maintenance policies, ordinary wear and tear excepted;

 

(viii)      discontinue,
permit to lapse or otherwise fail to keep in full force and effect any material policies of insurance or knowingly take any action
that would cause any such policy to terminate or be terminable prior to the expiration of its stated term;

 

(ix)         except
as required by applicable Law, make or change any material Tax election of the Company or any of its Subsidiaries, change any annual
Tax accounting period of the Company or any of its Subsidiaries, adopt or change any Tax accounting method of the Company or any
of its Subsidiaries, file any return, declaration, report, claim for refund, or information return or statement relating to Taxes
(including any schedule or attachment thereto, and including any amendment thereof, a “Return”) relating to the Company
or any of its Subsidiaries in a manner that is materially inconsistent with past practice, enter into any closing agreement relating
to material Taxes of the Company or any of its Subsidiaries, settle any material claim made by any Governmental Authority including
social security administration, domestic or foreign, having jurisdiction over the assessment, determination, collection or other
imposition of Tax or assessment relating to the Company or any of its Subsidiaries (a “Tax Claim”), surrender any right
to claim a refund of Taxes relating to the Company or any of its Subsidiaries, consent to any extensions or waivers of the limitations
period applicable to any Tax Claim or assessment relating to the Company or any of its Subsidiaries, or enter into a Tax sharing
agreement or similar arrangement with respect to the Company or any of its Subsidiaries;

 

(x)          purchase,
redeem or otherwise acquire, split, combine or reclassify, directly or indirectly, any of the Company Common Shares or other equity
securities or give notice of any intention to exercise any right to purchase, redeem or otherwise acquire, split, combine or reclassify,
any of the Company Common Shares or other equity securities (including any such purchase, redemption, acquisition or notice in
accordance with the terms of the Articles of Incorporation or Bylaws or any stockholders agreement);

 

(xi)         issue
or sell, or issue any rights to purchase or subscribe for, or subdivide or otherwise change, any shares of the Company’s
or any of its Subsidiaries’ stock or other securities or similar rights;

 

(xii)        declare
or pay any dividends on or make other distributions (whether in cash, stock or property or any combination thereof), directly or
indirectly, in respect of the Company Common Shares;

 

(xiii)       amend
the Articles of Incorporation or Bylaws or the organizational documents of any Subsidiary, except as contemplated herein;

 

(xiv)      except
for a Claim for which the Company will be repaid all amounts payable thereunder or will not otherwise be responsible for any such
payments, settle any material Claim of, or against, the Company or its Subsidiaries for an amount in excess of $250,000;

 

    	 	14	 

     

    

 

(xv)       change
any method of accounting or accounting practice used by the Company or any of its Subsidiaries, except for any change required
by GAAP, by any Governmental Authority or by a change in Law;

 

(xvi)      cause
or permit, by any act or failure to act, any material License to expire or to be revoked, suspended, or modified, or take any action
that could reasonably be expected to cause any Governmental Authority to institute proceedings for the suspension, revocation,
or adverse modification of any material License;

 

(xvii)     maintain
any significant amount of investments in or trade in equities or other speculative securities;

 

(xviii)    take
any corporate or other action in furtherance of any of the foregoing; or

 

(xix)       agree
to do any of the foregoing.

 

5.2           Regulatory
Approval; Litigation.

 

(a)          The
Purchaser and the Seller agrees that it will use its reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, and to assist and cooperate with the other party in doing all things, which may be required to obtain all necessary
actions or non-actions, waivers, consents and approval from Governmental Authorities in order to consummate the Contemplated Transactions
; provided, however, that, in connection with obtaining any such action, non-action, waiver, consent or approval, the Purchaser
shall not be required to agree, and the Seller, without the consent of the Purchaser shall not agree, to any condition or action
that the Purchaser reasonably believes would, individually or in the aggregate, adversely affect Purchaser’s ability to obtain
the benefits (financial or otherwise) from the Contemplated Transactions (including benefits set forth in the Agreement).

 

(b)          The
Purchaser and the Seller agree that if any Action is brought seeking to restrain or prohibit or otherwise relates to consummation
of the Contemplated Transactions, the parties shall use all commercially reasonable efforts to defend such Action, whether judicial
or administrative, and to seek to have any stay or temporary restraining order entered by any court or Governmental Authority reversed
or vacated.

 

5.3           Access.

 

(a)          During
the Restricted Period, upon reasonable notice, the Seller and the Company shall (and shall cause its Subsidiaries to) afford to
the officers, employees, accountants, counsel, financial advisors and other representatives of the Purchaser, reasonable access
during normal business hours, during the period prior to the Closing Date, to all its books, records, properties, plants and personnel
and, during such period, the Seller and the Company shall (and shall cause its Subsidiaries to) furnish promptly to the Purchaser
(i) a copy of each report, schedule, registration statement and other document filed, published, announced or received by it during
such period pursuant to the requirements of Federal or state Laws, as applicable, and (ii) all other information concerning it
and its business, properties and personnel as the Purchaser may reasonably request. The Purchaser will hold any information obtained
pursuant to this Section 5.3 in confidence. Any investigation by the Purchaser shall not affect the representations and warranties
of the Seller or the conditions to its obligations to consummate the transactions contemplated by this Agreement.

 

(b)          During
the Restricted Period, the Seller shall promptly keep the Purchaser and its representatives informed of any material development
in the business of the Company or its Subsidiaries. Without limiting the foregoing, during the Restricted Period, the Seller shall
cause its and the Company’s officers to consult and cooperate with representatives of the Purchaser in order to facilitate
the Closing.

 

5.4           Employee
Benefits Matters. Without limiting the generality of the foregoing, except as otherwise expressly agreed in writing by the
Purchaser, the Company shall not, and shall cause its Subsidiaries not to, take any of the following actions during the Restricted
Period:

 

(a)          enter
into any new Employment Agreement;

 

(b)          adopt
any new Company Benefit Plan or, except as may be required by applicable Law, amend any existing Company Benefit Plan;

 

    	 	15	 

     

    

 

(c)          grant
any stock options or other equity-based compensation to any employee or director of the Company or any of its Subsidiaries;

 

(d)          increase
the salaries, wages, or other compensation or benefits of any employee or director of the Company or any of its Subsidiaries; or

 

(e)          agree
to do any of the foregoing.

 

5.5           Legends.
Any legends placed on the Company Common Shares or other securities issuable, if any, pursuant to the Contemplated Transactions
shall be removed by the Company upon delivery of an opinion of counsel reasonably acceptable to the Company stating that such legend
is no longer necessary.

 

Article
6

CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO CLOSE 

 

6.1           Conditions
to Closing. The obligation of the Purchaser to enter into and complete the Closing are subject to the fulfillment on or prior
to the Closing Date of the following conditions, any one or more of which may be waived by the Purchaser:

 

(a)          Representations
and Covenants. The representations and warranties of the Seller and Guarantor contained in this Agreement shall be true and
correct in all material respects (other than those which are qualified as to materiality, Material Adverse Effect or other similar
term, which shall be true and correct in all respects) on and as of the Closing Date with the same force and effect as though made
on and as of the Closing Date (except that representations and warranties made as of a specific date shall be true and correct
in all material respects (except as aforesaid) on such date); the Seller and the Company shall have in all material respects performed
and complied with all covenants and agreements required by this Agreement to be performed or complied with by the Seller, the Guarantor
and the Company on or prior to the Closing Date; and the Seller shall have delivered to the Purchaser a certificate, dated the
date of the Closing Date and signed by an executive officer of the Seller, to the foregoing effect.

 

(b)          Secretary’s
Certificate. The Purchaser shall have received a certificate of the Secretary or an Assistant Secretary certifying that attached
thereto are true and complete copies of (i) the Articles of Incorporation and the Seller’s Bylaws, and (ii) all resolutions
adopted by the Board of Directors of the Seller authorizing the execution, delivery and performance of this Agreement and the Agreement
and the consummation of the Contemplated Transactions, and that all such resolutions are in full force and effect and are all the
resolutions adopted in connection with the transactions contemplated hereby and thereby, and certifying the names and signatures
of the officers of the Seller authorized to sign this Agreement and the other documents to be delivered hereunder and thereunder.

 

(c)          Good
Standing. The Seller shall have delivered to the Purchaser a good standing certificate (or its equivalent) for the Seller.

 

(d)          No
Actions. (i) No Action shall be pending or overtly threatened by any Governmental Authority or any other party against the
Seller or the Company or any of its directors or against that Purchaser, which Action is reasonably likely to (A) restrain or prohibit
the consummation of any of the Contemplated Transactions, or (B) result in damages that alone or together with the costs and expenses
of defending such Action are material in relation to the Seller, the Company and its Subsidiaries, taken as a whole, and (ii) no
Law, order, decree, rule or injunction shall have been enacted, entered, promulgated or enforced by any Governmental Authority
that prohibits or makes illegal the consummation of any of the Contemplated Transactions.

 

(e)          No
Material Adverse Effect. Since the date hereof, no event or development shall have occurred (or failed to occur) and there
shall be no circumstance (and that Purchaser shall not have become aware of any previously existing circumstance) that, individually
or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.

 

(f)          Consents
and Amendments. Any and all consents, approvals, orders, Licenses and other actions necessary to be obtained from Governmental
Authorities, the Company’s Board and the Company’s shareholders in order to consummate the Contemplated Transactions.

 

    	 	16	 

     

    

 

Article
7

CONDITIONS PRECEDENT TO THE OBLIGATION OF THE SELLER TO CLOSE 

 

7.1           Conditions
to Closing. The obligation of the Seller to enter into and complete the Closing are subject to the fulfillment on or prior
to the Closing Date of the following conditions, any one or more of which may be waived by the Seller:

 

(a)          Representations
and Covenants. The representations and warranties of the Purchaser contained in this Agreement shall be true and correct in
all material respects (other than those which are qualified as to materiality, which shall be true and correct in all respects)
on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date (except that representations
and warranties made as of a specific date shall be true and correct in all material respects (except as aforesaid) on such date);
each Purchaser shall have in all material respects performed and complied with all covenants and agreements required by this Agreement
to be performed or complied with by it on or prior to the Closing Date; and each Purchaser shall have delivered to the Seller a
certificate, dated the date of the Closing Date and signed by the applicable Purchaser, to the foregoing effect.

 

(b)          No
Actions. (i) No Action shall be pending or overtly threatened by any Governmental Authority or any other party against the
Seller, the Company or any of its directors or the Purchaser, which Action is reasonably likely to (A) restrain or prohibit the
consummation of any of the Contemplated Transactions, or (B) result in damages that alone or together with the costs and expenses
of defending such Action are material in relation to the Seller, the Company and its Subsidiaries, taken as a whole, and (ii) no
Law, order, decree, rule or injunction shall have been enacted, entered, promulgated or enforced by any Governmental Authority
that prohibits or makes illegal the consummation of any of the Contemplated Transactions.

 

(c)          Consents
and Amendments. Any and all consents, approvals, orders, Licenses and other actions necessary to be obtained from Governmental
Authorities in order to consummate the Contemplated Transactions.

 

Article
8

INDEMNIFICATION 

 

8.1           Indemnification.
Seller and Guarantor hereby severally and jointly agree to indemnify, defend and hold harmless the Purchaser, its respective Affiliates
and its directors, managers, officers, agents, advisors, representatives, employees, successors and assigns (each, a “Purchaser
Indemnitee”) from and against all Claims, including without limitation, interest, penalties and attorneys’ fees and
expenses, asserted against, resulting to, or imposed upon or incurred by such Purchaser Indemnitee by a third party and arising
out of or resulting from any allegation or Claim in respect of (i) any wrongful action or inaction by the Seller or Guarantor in
connection with the authorization, execution, delivery and performance of this Agreement, except to the extent that the Purchaser
Indemnitee has committed a material breach of its representations, warranties or obligations under this Agreement, which breach
is the cause of the Seller’s wrongful action or inaction, (ii) any inaccuracy in or breach of any of the representations
or warranties of the Seller, Guarantor or the Company contained in this Agreement or any other schedule, certificate or other document
delivered pursuant hereto, (iii) any breach by Seller or the Company of any of its covenants or agreements contained in this Agreement
or any other schedule, certificate or other document delivered pursuant hereto, and (iv) (A) any Claim, loss or expense related
to the conduct of the business of the Company prior to Closing, or (B) prior to Closing, the ownership or operation of any assets
of the Company.

 

8.2           Terms
of Indemnification. The obligations and liabilities of Seller and Guarantor with respect to Claims by third parties will be
subject to the following terms and conditions: (a) a Purchaser Indemnitee will give the Seller prompt notice of any Claims asserted
against, resulting to, imposed upon or incurred by such Purchaser Indemnitee, directly or indirectly, and the Seller will undertake
the defense thereof by representatives of their own choosing which are reasonably satisfactory to such Purchaser Indemnitee; provided
that the failure of any Purchaser Indemnitee to give notice as provided in Section 10.3 shall not relieve the Seller of its obligations
under this Article 8; (b) if within a reasonable time after notice of any Claim, the Seller fails to defend, such Purchaser Indemnitee
will have the right to undertake the defense, compromise or settlement of such Claims on behalf of and for the account and at the
risk of the Seller, subject to the right of the Seller to assume the defense of such Claim at any time prior to settlement, compromise
or final determination thereof; (c) if there is a reasonable probability that a Claim may materially and adversely affect a Purchaser
Indemnitee other than as a result of money damages or other money payments, such Purchaser Indemnitee will have the right at its
own expense to defend, or co-defend, such Claim; (d) neither the Seller nor

 

    	 	17	 

     

    

 

the Purchaser Indemnitee will, without the prior written
consent of the other, settle or compromise any Claim or consent to entry of any judgment relating to any such Claim; (e) with respect
to any Claims asserted against a Purchaser Indemnitee, such Purchaser Indemnitee will have the right to employ one counsel of its
choice in each applicable jurisdiction (if more than one jurisdiction is involved) to represent such Purchaser Indemnitee if, in
such Purchaser Indemnitee’s reasonable judgment, a conflict of interest between such Purchaser Indemnitee and the Seller
exists in respect of such Claims, and in that event the fees and expenses of such separate counsel shall be paid by the Seller;
and (f) the Seller will provide each Purchaser Indemnitee reasonable access to all records and documents of the Seller relating
to any Claim.

 

Article
9

TERMINATION  

 

9.1           Termination
of Agreement. The Parties may terminate this Agreement as provided below:

 

(a)          the
Purchaser and the Seller may terminate this Agreement by mutual written consent at any time prior to the Closing;

 

(b)          the
Purchaser may terminate this Agreement by giving written notice to the Seller at any time prior to the Closing (i) in the event
the Seller has breached any material representation, warranty, or covenant contained in this Agreement in any material respect
(or breached in any respect, if such representation, warranty or covenant is qualified by materiality or material adverse effect),
and the Purchaser has notified the Seller of the breach or (ii) if the Closing shall not have occurred on or before April 30, 2017,
by reason of the failure of any condition precedent under Section 6.1 hereof (unless the failure results primarily from the Purchaser
breaching any representation, warranty, or covenant contained in this Agreement); and

 

(c)          the
Seller may terminate this Agreement by giving written notice to the Purchaser at any time prior to the Closing (i) in the event
a Purchaser has breached any material representation, warranty, or covenant contained in this Agreement in any material respect
(or breached in any respect, if such representation, warranty or covenant is qualified by materiality or material adverse effect),
and the Seller has notified the Purchaser of the breach or (ii) if the Closing shall not have occurred on or before April 30, 2017,
by reason of the failure of any condition precedent under Section 7.1 hereof (unless the failure results primarily from the Seller
itself breaching any representation, warranty, or covenant contained in this Agreement).

 

9.2           Effect
of Termination. Upon termination of this Agreement pursuant to Section 9.1 above, all rights and obligations of the Parties
hereunder shall terminate without any liability of either Party to the other Party (except for any liability of the Party then
in breach).

 

Article
10

MISCELLANEOUS 

 

10.1         Survival.
All representations and warranties, covenants and agreements of the Seller and the Purchaser contained in this Agreement shall
remain operative and in full force and effect regardless of any investigation made by or on behalf of any Purchaser or any controlling
Person thereof or by or on behalf of the Seller, any of its officers and directors or any controlling Person thereof, and such
representations and warranties shall survive for a period of 24 months from the Closing Date. The covenants and agreements contained
herein shall survive in accordance with their terms.

 

10.2         Fees
and Expenses. On the Closing Date, the Purchaser shall pay the expenses incurred in connection with the negotiation, execution,
delivery, performance and consummation of this Agreement and the Contemplated Transactions.

 

10.3         Notices.
All notices or other communications required or permitted hereunder shall be in writing and shall be delivered personally, telecopied
or sent by certified, registered or express mail, postage prepaid. Any such notice shall be deemed given if delivered personally
or telecopied, on the date of such delivery, or if sent by reputable overnight courier, on the first Business Day following the
date of such mailing, as follows:

 

(a)          if
to the Seller:

 

BT Capital Global
Limited

30 de Castro Street, Wickhams Cay
I, P.O. Box 4519, Road Town,

Tortola, British Virgin Islands

 

    	 	18	 

     

    

 

Attn: Legal Team

 

(b)          if
to the Purchaser:

 

Wecast Network, Inc.

375 Greenwich Street, Suite 516

New York, New York 10013

Attn: Board of Directors

Telecopy: 86+10-8586-2775

 

Any party may by notice given in accordance
with this Section 10.3 designate another address or Person for receipt of notices hereunder.

 

10.4         Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties
hereto. Other than the parties hereto and their successors and permitted assigns, and except as set forth in Section 8.1, no Person
is intended to be a beneficiary of this Agreement. No party hereto may assign its rights under this Agreement without the prior
written consent of the other party hereto; provided, however, that, the Purchaser may assign all or any portion of its rights and
obligations hereunder to any affiliates or designees of the Purchaser. Any assignee of any Purchaser pursuant to the proviso of
the foregoing sentence shall be deemed to be a “Purchaser” for all purposes of this Agreement.

 

10.5         Amendment
and Waiver.

 

(a)          No
failure or delay on the part of the Seller or the Purchaser in exercising any right, power or remedy hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive
of any remedies that may be available to the Seller or the Purchaser at Law, in equity or otherwise.

 

(b)          Any
amendment, supplement or modification of or to any provision of this Agreement and any waiver of any provision of this Agreement
shall be effective only if it is made or given in writing and signed by the Seller (in the case of any amendment, supplement, modification
or waiver after the Closing, with the approval of not less than a majority of the directors not appointed by the Purchaser) and
the Purchaser.

 

10.6         Counterparts.
This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, all of which when
so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

10.7         Headings.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

10.8         Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the
Requirements of Law of the State of New York without giving effect to the principles of conflict of Laws. Each of the parties hereto
hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the State of New York
and of the United States of America, in each case located in the County of New York, for any Action arising out of or relating
to this Agreement and the Contemplated Transactions (and agrees not to commence any Action relating thereto except in such courts),
and further agrees that service of any process, summons, notice or document by U.S. registered mail to its respective address set
forth in this Agreement, or such other address as may be given by one or more parties to the other parties in accordance with the
notice provisions of Section 10.3, shall be effective service of process for any action, suit or proceeding brought against it
in any such court. Each of the parties hereto hereby irrevocably and unconditionally waives any objection to the laying of venue
of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in the courts of the State
of New York or the United States of America, in each case located in the County of New York, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such Action brought in any such court has been
brought in an inconvenient forum. Each of the parties 

 

    	 	19	 

     

    

 

irrevocably and unconditionally waives, to the fullest extent permitted by
applicable Requirements of Law, any and all rights to trial by jury in connection with any action, suit or proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby.

 

10.9         Severability.
If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or
unenforceable shall substantially impair the benefits of the remaining provisions hereof.

 

10.10         Entire
Agreement. This Agreement, together with the schedules and exhibits hereto, and the Agreement referred to herein or delivered
pursuant hereto, are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein.
There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein or therein. This
Agreement, together with the schedules and exhibits hereto, and the Agreement referred to herein or delivered pursuant hereto,
supersede all prior agreements and understandings between the parties with respect to such subject matter.

 

10.11         Further
Assurances. Subject to the terms and conditions of this Agreement, from time to time after the Closing, the Seller and the
Purchaser agree to cooperate with one another, and at the request of the Seller or the Purchaser, as applicable, to execute and
deliver any further instruments or documents and take all such further action as the other party may reasonably request in order
to evidence or effectuate the consummation of the Contemplated Transactions and to otherwise carry out the intent of the parties
hereunder.

 

10.12         Public
Announcements. Except as required by any Requirement of Law, none of the parties hereto will issue or make any reports, statements
or releases to the public with respect to this Agreement or the Contemplated Transactions without consulting the Seller or the
Purchaser, as applicable.

 

10.13         Subsidiaries.
Whenever this Agreement provides that a Subsidiary of the Company is obligated to take or refrain from taking any action, the Seller
shall cause the Company or such Subsidiary to take or refrain from taking such action.

 

10.14         Guarantor
Guarantee. In consideration of the Purchaser agreeing at the request of Seller and Guarantor to enter into this Agreement,
and other good and valuable consideration receipt of which is hereby acknowledged by Guarantor, Guarantor hereby undertakes to
procure the performance by Seller of its obligations under this Agreement and irrevocably and unconditionally guarantees as a continuing
guarantee with effect from the date hereof all of Seller’s obligations and duties described in this Agreement. Guarantor’s
liability hereunder shall not be released, discharged or diminished by: (a) any legal limitation, lack of capacity or authorization
or defect in the actions of Seller or the bankruptcy, liquidation, insolvency, or dissolution of Seller; or (b) any forbearance,
neglect or delay in seeking performance of the obligations of Seller, any granting of time, indulgence or other relief to Seller
in relation to such performance, or any composition with, discharge, waiver or release of Seller.

 

[Signature pages follow]

 

    	 	20	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed and delivered by their respective officers hereunto duly authorized as
of the date first above written.

 

	 	WECAST NETWORK, INC.  
	 	 
	 	By	/s/ Bing Yang
	 	Name: Bing Yang
	 	Title: CEO

 

[Signature Page to Securities Purchase Agreement]

 

     

     

    

 

	 	BT CAPITAL GLOBAL LIMITED:
	 	 
	 	By:	/s/ Yang Siyi
	 	Name: Yang Siyi
	 	Title: Director
	 	 
	 	GUARANTOR:
	 	 
	 	SUN SEVEN STARS MEDIA GROUP LIMITED
	 	 
	 	By:	/s/ Bruno Wu
	 	Name: Bruno Wu
	 	Title: Chairman

 

[Signature Page to Securities Purchase Agreement]Exhibit 4.1

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF
ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS
AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY,
SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

WARRANT TO PURCHASE STOCK

 

	Company:	NUMEREX CORP., a Pennsylvania corporation
	Number of Shares:  	125,000
	Type/Series of Stock:	Common Stock
	Warrant Price:  	$.01 per share 
	Issue Date:  	March 31, 2017
	Expiration Date:  	March 31, 2027  See also Section 5.1(b)

 

THIS WARRANT CERTIFIES
THAT, for good and valuable consideration, KENNETH RAININ FOUNDATION (“KRF” and, together with any successor
or permitted assignee or transferee of this Warrant, “Holder”) is entitled to purchase the number of fully paid
and non-assessable shares (the “Shares”) of the above-stated Type/Series of Stock (the “Class”)
of the above-named company (the “Company”) at the above-stated Warrant Price, all as set forth above and as
adjusted pursuant to Section 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant.

 

SECTION 1.          EXERCISE.

 

1.1       Method
of Exercise. Holder may at any time and from time to time exercise this Warrant, in whole or in part, by delivering to the
Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached hereto
as Appendix 1 and, unless Holder is exercising this Warrant pursuant to a cashless exercise set forth in Section 1.2, a check,
wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for
the aggregate Warrant Price for the Shares being purchased.

 

1.2       Cashless
Exercise. On any exercise of this Warrant, in lieu of payment of the aggregate Warrant Price in the manner as specified in
Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal to
the value of this Warrant, or portion hereof as to which this Warrant is being exercised. Thereupon, the Company shall issue to
the Holder such number of fully paid and non-assessable Shares as are computed using the following formula:

 

X = Y(A-B)/A

where:

     

     

    

 

	
         
	X =	the number of Shares to be issued to the Holder;

 

	 	Y =	the number of Shares with respect to which this Warrant is being exercised (inclusive of the Shares surrendered to the Company in payment of the aggregate Warrant Price);

 

	 	A =	the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and

 

	 	B =	the Warrant Price.

 

1.3       Fair
Market Value. If the Company’s common stock is then traded or quoted on a nationally recognized securities exchange,
inter-dealer quotation system or over-the-counter market (a “Trading Market”) and the Class is common stock,
the fair market value of a Share shall be the closing price or last sale price of a share of common stock reported for the Business
Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company. If the
Company’s common stock is not traded in a Trading Market, the Board of Directors of the Company shall determine the fair
market value of a Share in its reasonable good faith judgment.

 

1.4       Delivery
of Certificate and New Warrant. Within a reasonable time after Holder exercises this Warrant in the manner set forth in Section
1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon such exercise
and, if this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the Shares not
so acquired.

 

1.5       Replacement
of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form,
substance and amount to the Company or, in the case of mutilation, on surrender of this Warrant to the Company for cancellation,
the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant of like tenor
and amount.

 

1.6       Treatment
of Warrant Upon Acquisition of Company.

 

(a)       Acquisition.
For the purpose of this Warrant, “Acquisition” means any transaction or series of related transactions involving:
(i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company (ii) any
merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively
to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their
capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority of the Company’s
(or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization
(or, if the Company’s stockholders beneficially own a majority of the outstanding voting power of the surviving or successor
entity as of immediately after such merger, consolidation or reorganization,
such surviving or successor entity is not the Company);

 

    	 	2	 

     

    

 

 or (iii) any sale or other transfer by the stockholders of the Company
of shares representing at least a majority of the Company’s then-total outstanding combined voting power.

 

(b)       Treatment
of Warrant at Acquisition. In the event of an Acquisition in which the consideration to be received by the Company’s
stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable Securities (a “Cash/Public
Acquisition”), either (i) Holder shall exercise this Warrant pursuant to Section 1.1 and/or 1.2 and such exercise will
be deemed effective immediately prior to and contingent upon the consummation of such Acquisition or (ii) if Holder elects not
to exercise the Warrant, this Warrant will expire immediately prior to the consummation of such Acquisition.

 

(c)       The
Company shall provide Holder with written notice of any proposed Cash/Public Acquisition (together with such reasonable information
as Holder may reasonably require regarding the treatment of this Warrant in connection with such contemplated Cash/Public Acquisition
giving rise to such notice), which is to be delivered to Holder not less than seven (7) Business Days prior to the closing of the
proposed Cash/Public Acquisition. In the event the Company does not provide such notice, then if, immediately prior to the Cash/Public
Acquisition, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance
with Section 1.3 above would be greater than the Warrant Price in effect on such date, then this Warrant shall automatically be
deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares (or such other securities) for which
it shall not previously have been exercised, and the Company shall promptly notify the Holder of the number of Shares (or such
other securities) issued upon such exercise to the Holder and Holder shall be deemed to have restated each of the representations
and warranties in Section 4 of the Warrant as the date thereof.

 

(d)       Upon
the closing of any Acquisition other than a Cash/Public Acquisition defined above, the acquiring, surviving or successor entity
shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other
property as would have been paid for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares
were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with
the provisions of this Warrant.

 

(e)       As
used in this Warrant, “Marketable Securities” means securities meeting all of the following requirements: (i)
the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required reports and other
information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would
be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or prior to the closing thereof
is then traded in a Trading Market, and (iii) following the closing of such Acquisition, Holder would not be restricted from publicly
re-selling all of the issuer’s shares and/or other securities that would be received by Holder in such Acquisition were Holder
to exercise or convert this Warrant in full on or prior to the closing of such Acquisition, except to the extent that any such
restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does
not extend beyond six (6) months from the closing of such Acquisition.

 

    	 	3	 

     

    

 

 

1.7       Registration
Right. The Company shall use commercially reasonable efforts to prepare and file with the Securities and Exchange Commission,
as promptly as practicable following the Issue Date of this Warrant and in any event within 90 calendar days of the Issue Date,
a registration statement covering the Shares for an offering to be made on a continuous basis pursuant to Rule 415 or any successor
rule thereto. The registration statement shall be on Form S-3 or, if the Company is not so eligible, on Form S-1 or another appropriate
form in accordance herewith and shall contain the “Plan of Distribution” in substantially the form provided by the
Holder. The Company shall use commercially reasonable efforts to cause the registration statement to become effective and remain
effective until all Shares covered by such registration statement have been sold, or may be sold without the requirement to be
in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, as determined by the counsel
to the Company. The Company shall bear all fees and expenses attendant to the registration of the Shares pursuant to this Section.

 

SECTION 2.       ADJUSTMENTS
TO THE SHARES AND WARRANT PRICE.

 

2.1       Stock
Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the Class payable
in common stock or other securities or property (other than cash), then upon exercise of this Warrant, for each Share acquired,
Holder shall receive, without additional cost to Holder, the total number and kind of securities and property which Holder would
have received had Holder owned the Shares of record as of the date the dividend or distribution occurred. If the Company subdivides
the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number of Shares purchasable
hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased. If the outstanding shares
of the Class are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price
shall be proportionately increased and the number of Shares shall be proportionately decreased.

 

2.2       Reclassification,
Exchange, Combinations or Substitution. Upon any event whereby all of the outstanding shares of the Class are reclassified,
exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then
from and after the consummation of such event, this Warrant will be exercisable for the number, class and series of Company securities
that Holder would have received had the Shares been outstanding on and as of the consummation of such event, and subject to further
adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions of this Section 2.2 shall
similarly apply to successive reclassifications, exchanges, combinations, substitutions, replacements or other similar events.

 

2.3       No
Fractional Share. No fractional Share shall be issuable upon exercise of this Warrant and the number of Shares to be issued
shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of the Warrant, the
Company shall eliminate such fractional Share interest by paying Holder in cash the amount computed by multiplying the fractional
interest by (i) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (ii) the then-effective
Warrant Price.

 

    	 	4	 

     

    

 

 

2.4       Notice/Certificate
as to Adjustments. Upon each adjustment of the Warrant Price, Class and/or number of Shares, the Company, at the Company’s
expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or
number of Shares and facts upon which such adjustment is based. The Company shall, upon written request from Holder, furnish Holder
with a certificate of its Chief Financial Officer, including computations of such adjustment and the Warrant Price, Class and number
of Shares in effect upon the date of such adjustment.

 

SECTION 3.         REPRESENTATIONS
AND COVENANTS OF THE COMPANY.

 

3.1       Representations
and Warranties. The Company represents and warrants to, and agrees with, the Holder as follows:

 

(a)       All
Shares which may be issued upon the exercise of this Warrant, and all securities, if any, issuable upon conversion of the Shares,
shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any liens and encumbrances
except for restrictions on transfer provided for herein or under applicable federal and state securities laws. The Company covenants
that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock such number
of shares of the Class, common stock and other securities as will be sufficient to permit the exercise in full of this Warrant
and the conversion of the Shares into common stock or such other securities.

 

(b)       The
Company is a corporation duly incorporated, validly existing and subsisting under the laws of the Commonwealth of Pennsylvania.

 

(c)       The
Company has the requisite power and authority to execute and deliver this Warrant and to perform its obligations hereunder.

 

(d)       The
execution and delivery of this Warrant by the Company and the performance of its obligations hereunder have been duly authorized
by all necessary corporate action. The Company has duly executed and delivered this Warrant.

 

(e)       The
Company acknowledges that one of the members of the Company’s Board of Directors has a financial or other interest in KRF
such that he could be considered an interested director for purposes of Section 1728 of the Business Corporation Law of 1988 of
the Commonwealth of Pennsylvania (“Section 1728”) with respect to transactions contemplated by this Warrant. Accordingly,
the Company represents and warrants that the terms of this Warrant and the transactions contemplated hereby have been negotiated
between the Company and KRF on an arms’ length basis and have been approved by the Company’s Board of Directors in
accordance with the standards and procedures set forth in Section 1728.

 

(f)       No
consent or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other
person is required in order for the Company to execute, deliver, or perform any of its
obligations under this Warrant except for such notices that have been provided on or prior to the date hereof.

 

    	 	5	 

     

    

 

 

(g)       The
execution and delivery of this Warrant and the consummation by the Company of the transactions contemplated hereby do not and will
not (i) violate any provision of the Company’s organizational documents; (ii) violate any Law or Order applicable to the
Company or by which any of its properties or assets may be bound; or (iii) constitute a default under any material agreement or
contract by which the Company may be bound.

 

(h)       This
Warrant is a valid, legal and binding obligation of the Company, enforceable against the Company in accordance with its terms except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

 

 For purposes of
this Warrant:

 

(1)         “Governmental
Authority” means the government of any nation or any political subdivision thereof, whether at the national, state, territorial,
provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other
entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining
to, government (including any supranational bodies such as the European Union or the European Central Bank);

 

(2)         “Law”
means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any Governmental Authority
and authoritative interpretations thereon; and

 

(3)         “Order”
means any order, decree, judgment, writ, injunction, settlement agreement, requirement or determination of an arbitrator or a court
or other Governmental Authority.

 

3.2       Notice
of Certain Events. If the Company proposes at any time to:

 

(a)       declare
any dividend or distribution upon the outstanding shares of the Class or common stock, whether in cash, property, stock, or other
securities and whether or not a regular cash dividend;

 

(b)       offer
for subscription or sale pro rata to the holders of the outstanding shares of the Class any additional shares of any class or series
of the Company’s stock (other than pursuant to contractual pre-emptive rights);

 

(c)       effect
any reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares of the
Class; or

 

(d)       effect
an Acquisition or to liquidate, dissolve or wind up;

 

then, in connection with each such event,
the Company shall give Holder:

    	 	6	 

     

    

 

 

(1)       at
least seven (7) Business Days prior written notice of the date on which a record will be taken for such dividend, distribution,
or subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto)
or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; and

 

(2)       in
the case of the matters referred to in (c) and (d) above at least seven (7) Business Days prior written notice of the date when
the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange
their shares for the securities or other property deliverable upon the occurrence of such event).

 

Reference is made to Section 1.6(c) whereby
this Warrant will be deemed to be exercised pursuant to Section 1.2 hereof if the Company does not give written notice to Holder
of a Cash/Public Acquisition as required by the terms hereof. Company will also provide information requested by Holder that is
reasonably necessary to enable Holder to comply with Holder’s accounting or reporting requirements.

 

SECTION 4.         REPRESENTATIONS,
WARRANTIES OF THE HOLDER.

 

The Holder represents
and warrants to the Company as follows:

 

4.1       Purchase
for Own Account. This Warrant and the Shares issuable upon exercise of this Warrant by Holder are being acquired for investment
for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning
of the Act. Holder also represents that it has not been formed for the specific purpose of acquiring this Warrant or the Shares.

 

4.2       Disclosure
of Information. Holder is aware of the Company’s business affairs and financial condition and has received or has had
full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to
the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to
obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort
or expense) necessary to verify any information furnished to Holder or to which Holder has access.

 

4.3       Investment
Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk. Holder
has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic
risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial
or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying
securities and/or has a preexisting personal or business
relationship with the Company and certain of its

 

    	 	7	 

     

    

 

 officers, directors or controlling persons of a nature and duration that enables
Holder to be aware of the character, business acumen and financial circumstances of such persons.

 

4.4       Accredited
Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated under the Act.

 

4.5       The
Act. Holder understands that the Warrant and the Shares issuable upon exercise hereof have not been registered under the Act
or qualified under the securities laws of any state and, except as set forth in Sections 5.3 and 5.4 below, may not be offered,
sold, pledged or otherwise transferred unless a registration statement covering the securities under the Act is in effect or unless
an exemption from such registration and qualification are otherwise available and that it may be required to hold such securities
for an indefinite period or until it is eligible to resell such securities under Rule 144 promulgated under the Act. The Holder
also understands that any sale of (A) its rights hereunder to purchase Common Stock or (B) Common Stock issued or issuable
hereunder which might be made by it in reliance upon Rule 144 promulgated under the Act may be made only in accordance with the
terms and conditions of that Rule.

 

4.6       No
Voting Rights. Holder, as a Holder of this Warrant, will not have any voting rights until the exercise of this Warrant.

 

SECTION 5.         MISCELLANEOUS.

 

5.1       Term;
Automatic Cashless Exercise Upon Expiration.

 

(a)       Term.
Subject to the provisions of Section 1.6 above, this Warrant is exercisable in whole or in part at any time and from time to time
on or before 6:00 PM, Eastern time, on the Expiration Date and shall be void thereafter.

 

(b)       Automatic
Cashless Exercise upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share (or other
security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant Price
in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section
1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall,
within a reasonable time, deliver a certificate representing the Shares (or such other securities) issued upon such exercise to
Holder.

 

5.2       Legends.
Each certificate evidencing Shares (and each certificate evidencing the securities issued upon conversion of any Shares, if any)
shall be imprinted with an appropriate restrictive legend, except that such certificate shall not bear such restrictive legend
if (a) in the opinion of counsel for the Company such legend is not required in order to establish compliance with any provisions
of the Act, (b) such Shares are eligible for resale without restriction under, or continued compliance with any provision of, Rule
144 promulgated under the Act, or (c) such Shares have been resold under an effective registration statement. Any restrictive legends
on the Shares may be removed at the request of
the Holder thereof if any of the conditions set forth in clauses (a), (b) or (c) have been met.

 

    	 	8	 

     

    

 

 

5.3       Compliance
with Securities Laws on Transfer. This Warrant and the Shares issued upon exercise of this Warrant (and the securities issuable,
directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part except in
compliance with applicable federal and state securities laws by the transferor and the transferee (including, without limitation,
the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested
by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder,
provided that any such transferee is an “accredited investor” as defined in Regulation D promulgated under the Act.
Additionally, the Company shall also not require an opinion of counsel if there is no material question as to the availability
of Rule 144 promulgated under the Act.

 

5.4       Transfer
Procedure. After receipt by KRF of the executed Warrant, KRF may transfer all or part of this Warrant to one or more of KRF’s
affiliates (each, an “KRF Affiliate”), by execution of an Assignment substantially in the form of Appendix 2.
Subject to the provisions of Article 5.3 and upon providing the Company with written notice, KRF, any such KRF Affiliate and any
subsequent Holder, may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the Shares
issuable directly or indirectly, upon conversion of the Shares, if any) to any other transferee, provided, however, in connection
with any such transfer, the KRF Affiliate(s) or any subsequent Holder will give the Company notice of the portion of the Warrant
being transferred with the name, address and taxpayer identification number of the transferee and Holder will surrender this Warrant
to the Company for reissuance to the transferee(s) (and Holder if applicable).

 

5.5       Notices.
All notices and other communications hereunder from the Company to the Holder, or vice versa, shall be deemed delivered and effective
(i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified mail,
postage prepaid, (iii) upon actual receipt if given by facsimile or electronic mail and such receipt is confirmed in writing by
the recipient, or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid,
in any case at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company
or such Holder from time to time in accordance with the provisions of this Section 5.5. All notices to Holder shall be addressed
as follows until the Company receives notice of a change of address in connection with a transfer or otherwise:

 

KENNETH RAININ FOUNDATION

155 Grand Avenue, Suite 1000

Oakland, CA 94612

Attn: Jose Flores

 

Notice to the Company
shall be addressed as follows until Holder receives notice of a change in address:

 

NUMEREX CORP.

400 Interstate North Pkwy, Suite 1350

Atlanta, GA 30339

Attn: Kenneth Gayron

Telephone: 800-665-5686

Facsimile: (770) 693-5950

 

    	 	9	 

     

    

 

 

With a copy (which
shall not constitute notice) to:

 

ARNOLD & PORTER KAYE SCHOLER LLP

601 Massachusetts Ave, NW

Washington, DC 20001

Attn: Richard E. Baltz

Telephone: (202) 942-5124

Facsimile: (202) 942-5999

Email: richard.baltz@apks.com

 

5.6       Waiver.
This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally or in a particular instance
and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

 

5.7       Attorneys’
Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing
in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’
fees.

 

5.8       Counterparts;
Facsimile/Electronic Signatures. This Warrant may be executed in counterparts, all of which together shall constitute one and
the same agreement. Any signature page delivered electronically or by facsimile shall be binding to the same extent as an original
signature page with regards to any agreement subject to the terms hereof or any amendment thereto.

 

5.9       Governing
Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York, without giving effect
to its principles regarding conflicts of law.

 

5.10      Headings.
The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision
of this Warrant.

 

5.11      Business
Days. “Business Day” is any day that is not a Saturday, Sunday or a day on which banks in California are
closed.

 

[Signature page follows]

 

 

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Warrant to Purchase Stock to be executed by their duly authorized representatives effective as of
the Issue Date written above.

	 	 	 
	NUMEREX CORP.	 
	 	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	(Print)  	 
	Title:	 	 
	 	 	 

[Signature Page to Warrant to Purchase
Stock]

 

     

     

    

 

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.       The
undersigned Holder hereby exercises its right to purchase ___________ shares of the Common Stock of NUMEREX CORP. (the “Company”)
in accordance with the attached Warrant To Purchase Stock, and tenders payment of the aggregate Warrant Price for such shares as
follows:

 

 ̈      check
in the amount of $________ payable to order of the Company enclosed herewith

 

 ̈      Wire
transfer of immediately available funds to the Company’s account

 

 ̈      Cashless
Exercise pursuant to Section 1.2 of the Warrant

 

 ̈      Other
[Describe] __________________________________________

 

2.       Please
issue a certificate or certificates representing the Shares in the name specified below:

 

__________________________________

Holder’s Name

 

__________________________________

 

__________________________________

(Address)

 

3.       By
its execution below and for the benefit of the Company, Holder hereby restates each of the representations and warranties in Section
4 of the Warrant to Purchase Stock as of the date hereof.

 

	 	HOLDER:
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Date:	 

 

     

     

    

 

APPENDIX 2

 

ASSIGNMENT

 

For value received,
Kenneth Rainin Foundation hereby sells, assigns and transfers unto

 

Name:                      [KRF
TRANSFEREE]

 

 Address:_________________________

 

Tax ID:                      ___________________________

 

that certain Warrant to Purchase
Stock issued by NUMEREX CORP. (the “Company”), on ______ ___, 20__ (the “Warrant”) together
with all rights, title and interest therein.

 

	 	KENNETH RAININ FOUNDATION
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

Date:____________________________________

 

By its execution below, and for the benefit
of the Company, [KRF TRANSFEREE] makes each of the representations and warranties set forth in Article 4 of the Warrant and agrees
to all other provisions of the Warrant as of the date hereof.

 

	 	[KRF TRANSFEREE]
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:

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