Document:

Exhibit 4.13

  

ASSET EXCHANGE AGREEMENT

 

BY AND BETWEEN

 

C MEDIA LIMITED,

A CORPORATION ORGANIZED UNDER THE LAWS OF
THE CAYMAN ISLANDS,

 

&

 

KINGTONE WIRELESSINFO SOLUTION HOLDING
LTD., 

A CORPORATION ORGANIZED UNDER THE LAWS OF THE BRITISH VIRGIN ISLANDS

 

 

 

DATED AS OF January
25, 2018

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1 DEFINITIONS AND INTERPRETATION	5
	 	 
	Section 1.1	Defined Terms	5
	Section 1.2	References and Rules of Construction	5
	 	 	 
	ARTICLE 2 EXCHANGE	6
	 	 	 
	Section 2.1	Agreement to Exchange Assets	6
	Section 2.2	C Media Assets	6
	Section 2.3	Kingtone Assets	7
	Section 2.4	Excluded Assets	7
	Section 2.5	Proration of Costs and Revenues	8
	 	 	 
	ARTICLE 3 EXCHANGE CONSIDERATION	8
	 	 
	Section 3.1	Exchange Consideration	8
	Section 3.2	Tax Treatment	8
	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF C MEDIA	8
	 	 
	Section 4.1	Subsidiaries	8
	Section 4.2	Organization and Qualification	9
	Section 4.3	Authorization; Enforcement	9
	Section 4.4	No Conflicts	9
	Section 4.5	Filings, Consents and Approvals	9
	Section 4.6	Capitalization	9
	Section 4.7 	Litigation	10
	Section 4.8 	Labor Relations	10
	Section 4.9 	Compliance	10
	Section 4.10 	Environmental Laws	10
	Section 4.11	Permits	11
	Section 4.12	Title to Assets	11
	Section 4.13	Intellectual Property Rights	11
	Section 4.14	Insurance	11
	Section 4.15	Transactions With Affiliates and Employees	11
	Section 4.16	Certain Fees	11
	Section 4.17	Tax Status	12
	 	 	 
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF KINGTONE	12
	 	 
	Section 5.1	Subsidiaries	12
	Section 5.2	Organization and Qualification	12
	Section 5.3	Authorization; Enforcement	12
	Section 5.4	No Conflicts	12
	Section 5.5	Filings, Consents and Approvals	13
	Section 5.6	Capitalization	13
	Section 5.7	Litigation	13
	Section 5.8	Labor Relations	13
	Section 5.9	Compliance	14
	Section 5.10	Environmental Laws	14
	Section 5.11	Permits	14
	Section 5.12	Title to Assets	14

 

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	Section 5.13	Intellectual Property Rights	14
	Section 5.14	Insurance	15
	Section 5.15	Transactions With Affiliates and Employees	15
	Section 5.16	Certain Fees	15
	Section 5.17	Tax Status	15
	Section 5.18	Issuance of Exchange Shares	15
	Section 5.19	SEC Reports; Financial Statements	15
	Section 5.20	Sarbanes-Oxley; Internal Accounting Controls	16
	Section 5.21	Listing and Maintenance Requirements	16
	 	 	 
	 	 	 
	ARTICLE 6 COVENANTS OF THE PARTIES	16
	 	 
	Section 6.1	Access to Records	16
	Section 6.2	Government Reviews	1623
	Section 6.3	Public Announcements; Confidentiality	17
	Section 6.4	Operation of Business	17
	Section 6.5	Release of Liens	18
	Section 6.6	Further Assurances	18
	 	 	 
	ARTICLE 7 CONDITIONS TO CLOSING	18
	 	 
	Section 7.1	C Media’s Conditions to Closing	18
	Section 7.2	Kingtone’s Conditions to Closing	19
	 	 	 
	ARTICLE 8 CLOSING	19
	 	 
	Section 8.1	Time and Place of Closing	19
	Section 8.2	Obligations of C Media Closing	20
	Section 8.3	Obligations of Kingtone at Closing	20
	 	 	 
	ARTICLE 9TERMINATION	20
	 	 
	Section 9.1	Termination	20
	Section 9.2	Effect of Termination	21
	 	 	 
	ARTICLE 10 ASSUMPTION; INDEMNIFICATION	21
	 	 
	Section 10.1	Survival of Representations and Warranties	21
	Section 10.2	Acquiring Party’s Assumption of Obligations	21
	Section 10.3	General Indemnification	22
	Section 10.4	Indemnification Actions	22
	Section 10.5	Limitation on Actions	23
	 	 	 
	ARTICLE 11 TAX MATTERS	24
	 	 
	Section 11.1	Tax Filings	24
	Section 11.2	Current Tax Period Taxes	24
	 	 	 
	ARTICLE 12 MISCELLANEOUS	24
	 	 
	Section 12.1	Counterparts	24
	Section 12.2	Notice	24
	Section 12.3	Expenses	25
	Section 12.4	Governing Law; Jurisdiction	25
	Section 12.5	Waivers	25
	Section 12.6	Assignment	25
	Section 12.7	Entire Agreement	26
	Section 12.8	Amendment	26
	Section 12.9	No Third-Party Beneficiaries	26
	Section 12.10	Construction	26
	Section 12.11	Delivery of Records	26
	Section 12.12	Severability	26

  

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ASSET EXCHANGE AGREEMENT

 

This Asset Exchange
Agreement (the “Agreement”) is dated as of January 25, 2018 (the “Effective Date”),
by and between C MEDIA LIMITED, a corporation organized under the laws of the Cayman Islands (“C Media”), and
KINGTONE WIRELESSINFO SOLUTION HOLDING LTD., a corporation organized under the laws of the British Virgin Islands (“Kingtone”). 
C Media and Kingtone are sometimes referred to herein individually as a “Party” and collectively as the
“Parties,” and, if the context requires, a Party may be referred to as either a “Transferring
Party” or an “Acquiring Party”, as such terms are defined in Appendix A of
this Agreement.

 

RECITALS:

 

A. C
Media owns certain interests in properties, rights and other related Exchange Assets that are defined and described herein as the
“C Media Assets.”

 

B. Kingtone
owns certain interests in properties, rights and other related Exchange Assets that are defined and described herein as the “Kingtone
Assets.”

 

C. C
Media desires to grant, assign, transfer and convey to Kingtone the C Media Assets, in the manner and upon the terms and conditions
hereafter set forth.

 

D. Kingtone
desires to grant, assign, transfer and convey to C Media the Kingtone Assets, along with certain other consideration described
herein, in the manner and upon the terms and conditions hereafter set forth.

 

NOW, THEREFORE, in
consideration of the premises and of the mutual promises, representations, warranties, covenants, conditions and agreements contained
herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending
to be legally bound by the terms hereof, agree as follows:

 

ARTICLE 1

DEFINITIONS AND INTERPRETATION

 

Section 1.1 Defined
Terms.  In addition to the terms defined throughout this Agreement, the capitalized terms used herein that are not
otherwise defined shall have the meanings set forth in Appendix A.

 

Section 1.2 References
and Rules of Construction.  All references in this Agreement to Exhibits, Schedules, Appendices, Articles, Sections,
subsections, and clauses refer to the corresponding Exhibits, Schedules, Appendices, Articles, Sections, subsections, and clauses
of or to this Agreement unless expressly provided otherwise.  Titles appearing at the beginning of any Exhibits, Schedules,
Appendices, Articles, Sections, subsections, and clauses of this Agreement are for convenience only, do not constitute any part
of this Agreement and shall be disregarded in construing the language hereof.  The words “this Agreement,” “herein,”
“hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as
a whole and not to any particular Article, Section, subsection, or clause unless expressly so limited.  The words “this
Article,” “this Section,” “this subsection,” “this clause,” and words of similar import,
refer only to the Article, Section, subsection and clause hereof in which such words occur.  Theword “including”
(in its various forms) shall be deemed to include the terms “including, without limitation,” and “including,
but not limited to.” Any representation or warranty qualified to the “knowledge of the Transferring Party” or
“to the Transferring Party’s knowledge” or with any similar knowledge qualification is limited to matters actually
known (without the need to conduct an inquiry with respect to the applicable matter) by any ofthe respective directors and officers
of the Parties.  All references to “$” shall be deemed references to U.S. Dollars.  Unless expressly provided
to the contrary, the word “or” is not exclusive.  Pronouns in masculine, feminine or neuter genders shall be construed
to state and include any other gender, and words, terms and titles (including terms defined herein) in the singular form shall
be construed to include the plural and vice versa, unless the context otherwise requires.  The Appendix, Exhibits and Schedules
referred to herein are attached to and by this reference incorporated herein for all purposes.  References to any date shall
mean such date in New York, NY, and for purposes of calculating the time period in which any notice or action is to be given or
taken hereunder, such period shall be deemed to begin at 12:01 a.m. on the applicable date in New York, NY.

 

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ARTICLE 2

EXCHANGE

 

Section 2.1 Agreement
to Exchange Assets.  At the Closing, upon the terms and subject to the conditions of this Agreement, C Media agrees
to grant, transfer, assign and convey the C Media Assets to Kingtone, and Kingtone agrees to grant, transfer, assign and convey
to C Media or its designees, as applicable (i) the Kingtone Assets, (ii) [___] shares of the ordinary stock and 1,000,000 preferred
shares (collectively as the “Exchange Shares”) of Kingtone (the “Exchange”). 
The Preferred Shares shall have an initial per share voting weight of 399 votes (the “Preferred Shares”)
and shall be issued to Mr. Xuesong Song, the major shareholder of C Media. The C Media Assets, the Kingtone Assets and the Exchange
Shares contemplated by this Agreement to be exchanged by the Parties at the Closing are sometimes referred to herein as the “Exchange
Assets.”

 

 

Section 2.2 C
Media Assets.  Upon the terms and subject to the conditions of this Agreement, at the Closing, C Media hereby sells,
conveys, transfers, assigns and delivers to Kingtone and its successors and assigns, and Kingtone hereby purchases and acquires
from C Media, all of the C Media Assets, free and clear of all Liens. “C Media Assets” means all issued
and outstanding capital stock or equity interests of Star Chariot Limited (“Star Chariot”) and its wholly
owned subsidiaries MMB Limited and Mobile Media (China) Limited and their respective subsidiaries. C Media conducts all of its
businesses and operations through MMB Limited and Mobile Media (China) Limited and their subsidiaries (“C Media Business”).

 

Section 2.3 Kingtone
Assets.  Upon the terms and subject to the conditions of this Agreement, at the Closing, Kingtone hereby sells, conveys,
transfers, assigns and delivers to C Media and its successors and assigns, and C Media hereby purchases and acquires from Kingtone,
all of the Kingtone Assets, free and clear of all Liens. “Kingtone Assets” means all issued and outstanding
capital stock or equity interests of Topsky Info-tech Holdings Pte Ltd. and its wholly owned subsidiary Xi’an Softech Co.,
Ltd. (“Xi’an Softech”), including all entities effectively controlled by the Xi’an Softech
through contractual arrangements, including but not limited to Xi’an Kingtone Information Technology Co., Ltd. Kingtone conducts
all of its businesses and operations through Xi’an Softechand its variable interest entity (“VIE”)
Xi’an Kingtone Information Technology Co., Ltd. and its subsidiaries (“Kingtone Business”).

 

ARTICLE 3

EXCHANGE CONSIDERATION

 

Section 3.1 Exchange
Consideration.  The consideration for this Agreement, the receipt and sufficiency of which are hereby acknowledged
by the Parties, is the grant, exchange, transfer, assignment and conveyance of the Exchange Assets as described in Article 2 above,
and the mutual representations, warranties, covenants, and agreements of the Parties set forth herein.  The Parties agree
that the C Media Assets on the one hand, and the Kingtone Assets and Exchange Shares on the other hand, are of reasonably equivalent
value (meaning that said value is within the range of value for which each Transferring Party would sell its Exchange Assets to
a Person other than the Acquiring Party, in an arms’ length transaction). The Parties agree that the Preferred Shares shall:
(a) have an initial per share voting weight of 399 votes of the ordinary shares of Kingtone; (b)have no economic rights nor any
rights to dividends or any other distribution by the Kingtone; (c) be entitled to vote on all matters submitted to a vote of Kingtone’s
shareholders; (d) be transferable by Mr. Xuesong Song to any third party through one or more private transactions, subject to applicable
Law; and (e)in the event of a sale to a third party of a Preferred Share through a public offer and sale, have such Preferred Share’s
voting rights reduced to one vote per share effective immediately upon the consummation of such sale.

 

 

Section 3.2 Tax
Treatment.  Each Party shall promptly notify the other Parties in writing upon receipt of notice of any pending or
threatened Tax audit or assessment challenging the tax treatment of the Exchange, and no Party shall agree to any proposed adjustment
to the tax treatment of the Exchange by any Taxing authority without first giving to the other Parties prior written notice. 
Notwithstanding anything to the contrary set forth in this Agreement, nothing contained herein shall prevent any Party from settling
any proposed deficiency or adjustment by any Taxing authority based upon or arising out of the tax treatment of the transactions
contemplated by this Agreement and the Ancillary Documents, and no Party shall be required to litigate any proposed deficiency
or adjustment by any Taxing authority challenging such tax treatment.

 

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ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF C MEDIA

 

Except as set forth in
the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise
made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, C Media hereby
makes the following representations and warranties to Kingtone:

 

Section 4.1 Subsidiaries.
All of the direct and indirect subsidiaries (each, a “Subsidiary”) of C Media are set forth on Schedule
4.1. Except as set forth on Schedule 4.1, C Media owns, directly or indirectly, all of the capital stock or other equity
interests of each of its Subsidiaries free and clear of any Liens, and all of the issued and outstanding shares of capital stock
of each of C Media’s Subsidiaries are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities.

 

Section 4.2 Organization
and Qualification. C Media and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither C Media nor
any of its Subsidiaries is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of C Media and its Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any of this Agreement or any ancillary document relating to the transactions contemplated hereby (the “Transaction
Documents”), (ii) a material adverse effect on the results of operations, assets, business, prospects or condition
(financial or otherwise) of C Media and its Subsidiaries, taken as a whole, or (iii) a material adverse effect on C Media’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or
(iii), a “Material Adverse Effect”) and no proceeding or Action has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

Section 4.3 Authorization;
Enforcement. C Media has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of this Agreement and each of the other Transaction Documents by C Media and the consummation by it
of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of C Media and
no further action is required by C Media, the Board of Directors or C Media’s stockholders in connection herewith or therewith
other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which it is a party
has been (or upon delivery will have been) duly executed by C Media and, when delivered in accordance with the terms hereof and
thereof, will constitute the valid and binding obligation of C Media enforceable against C Media in accordance with its terms,
except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other
laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.

 

Section 4.4 No
Conflicts. The execution, delivery and performance by C Media of this Agreement and the other Transaction Documents to
which it is a party, and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict
with or violate any provision of C Media’s or any of its Subsidiaries’ certificate or articles of incorporation, bylaws
or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of C Media
or any of its Subsidiaries, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a C Media or Subsidiary debt or otherwise) or other understanding to which or any Subsidiary is a party or by which any property
or asset of C Media or any of its Subsidiaries is bound or affected, or (iii) subject to the Required Approvals, conflict with
or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or
Governmental Body to which C Media or any of its Subsidiaries is subject (including federal and state securities laws and regulations),
or by which any property or asset of C Media or any of its Subsidiaries is bound or affected; except in the case of each of clauses
(ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

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Section 4.5 Filings,
Consents and Approvals. C Media is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other Governmental Body or other Person
in connection with the execution, delivery and performance by C Media of the Transaction Documents, other than: (i) the filings
required pursuant to Section 6.2 of this Agreement, and (ii) such filings as are required to be made under applicable Laws (collectively,
the “Required Approvals”).

 

Section 4.6 Capitalization.
No Person has any right of first refusal, preemptive right, right of participation, or any similar right in relation to the capital
stock of C Media’s Subsidiaries. There are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for,
or giving any Person any right to subscribe for or acquire, any shares of the capital stock of C Media’s Subsidiaries, or
Contracts, commitments, understandings or arrangements by which C Media or any Subsidiary is or may become bound to issue additional
shares of capital stock or capital stock of any of its Subsidiaries. There are no outstanding securities or instruments of C Media
or any of its Subsidiaries that contain any redemption or similar provisions, and there are no Contracts, commitments, understandings
or arrangements by which C Media or any of its Subsidiaries is or may become bound to redeem a security of C Media’s Subsidiaries.
All of the outstanding shares of capital stock of C Media’s Subsidiaries are duly authorized, validly issued, fully paid
and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.

 

Section 4.7 Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of C Media, threatened
against or affecting C Media, any of its Subsidiaries or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or (ii)
could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither C
Media nor any of its Subsidiaries, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under applicable Laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge
of C Media, there is not pending or contemplated, any investigation by any Governmental Body involving C Media or any current or
former director or officer of C Media.

 

Section 4.8 Labor
Relations. No labor dispute exists or, to the knowledge of C Media, is imminent with respect to any of the employees of
C Media, which could reasonably be expected to result in a Material Adverse Effect. None of the C Media’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with C Media or such Subsidiary, and neither
C Media nor any of its Subsidiaries is a party to a collective bargaining agreement, and C Media and its Subsidiaries believe that
their relationships with their employees are good. To the knowledge of C Media, no executive officer of C Media or any of its Subsidiaries,
is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary
information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of
any third party, and the continued employment of each such executive officer does not subject C Media or any of its Subsidiaries
to any liability with respect to any of the foregoing matters. C Media and its Subsidiaries are in compliance with all applicable
Laws relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the
failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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Section 4.9 Compliance.
Neither C Media nor any of its Subsidiaries: (i) is in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a default by C Media or any of its Subsidiaries under),
nor has C Media or any of its Subsidiaries received notice of a claim that it is in default under or that it is in violation of,
any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its
properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or
order of any court, arbitrator or other Governmental Body or (iii) is or has been in violation of any statute, rule, ordinance
or regulation of any Governmental Body, including without limitation all foreign, federal, state and local Laws relating to Taxes,
environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in
each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

Section 4.10 Environmental
Laws. C Media and its Subsidiaries (i) are in compliance with all applicable Laws relating to pollution or protection of
human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including
laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous
substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating
to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice
letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental
Laws”); (ii) have received all permits licenses or other approvals required of them under applicable Environmental
Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license
or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

Section 4.11 Permits.
Except as set forth on Schedule 4.11, C Media possesses all material Permits as necessary to conduct the operations or as
necessary to own, lease and operate the properties of the C Media Business. All Permits are valid and in full force and effect,
and C Media is not in violation in any material respect of the terms of any Permit. C Media has not received any notice of any
Action to limit, suspend, modify or revoke any C Media or any operation of the C Media Business.

 

Section 4.12 Title
to Assets.

 

(a) Except as set forth
on Schedule 4.12(a)1.1(a), C Media has good and valid title to all of the C Media Assets (or a good and valid leasehold
interest in all such items leased), in each case free and clear of all Liens. The C Media Business is not conducted through any
other Person other than C Media and its Subsidiaries.

 

(b) Except as set forth
on Schedule 4.12(b), the C Media Assets (including, without limitation, the C Media Transferred Business Intellectual Property
Rights) constitute all the assets, properties and rights owned, used or held for use in connection with the C Media Business. C
Media owns or has the right to use all C Media Assets, and the C Media Assets are sufficient for the immediate needs of the C Media
Business as it is currently conducted. Other than assets that C Media has rights in under outstanding real estate leases or licenses,
no other assets necessary to conduct the C Media Business as it is presently conducted are owned by Person other than C Media and
its Subsidiaries.

 

Section 4.13 Intellectual
Property Rights. C Media owns and possesses all right, title and interest in and to the Intellectual Property used in the
C Media Business, (ii) neither C Media nor any of its Subsidiaries is currently infringing, or has in the past infringed,
on the intellectual property rights of any other Person, and (iii) to the knowledge of C Media, no Person is currently infringing
on the Intellectual Property used in the C Media Business.

 

Section 4.14 Insurance.
C Media and its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in
such amounts as are prudent and customary in the businesses in which the C Media and its Subsidiaries are engaged. Neither C Media
nor any of its Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

Section 4.15 Transactions
With Affiliates and Employees. Except as set forth on Schedule 4.15, none of the officers or directors of C Media
or any of its Subsidiaries, to the knowledge of the C Media, none of the employees of C Media or any of its Subsidiaries(i) owns
any property or right, tangible or intangible, which is used in the C Media Business, (ii) has any claim or cause of action against
C Media or any of its Subsidiaries, (iii) owes any money to, or is owed any money by C Media or any of its Subsidiaries or (iv)
is a party to any contract or other arrangement (written or oral) with C Media or any of its Subsidiaries.

 

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Section 4.16 Contracts.
Except as set forth on Schedule 4.16, each Contract to which any of C Media’s Subsidiaries is a party or by which
a C Media Subsidiary is bound is in full force and effect, is in compliance with all applicable Laws and constitutes a valid, legal,
binding and enforceable obligation of such C Media Subsidiary and, to the knowledge of C Media, the other parties thereto, subject
to (i) Laws of general application relating to bankruptcy, insolvency and the relief of debtors, and (ii) rules of Laws governing
specific performance, injunctive relief and other equitable remedies.

 

Section 4.17 Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by C Media or any of its Subsidiaries to
any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by the Transaction Documents.

 

Section 4.18 Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in
a Material Adverse Effect, C Media and its Subsidiaries each (i) has made or filed all United States and foreign federal, state
and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which
it is subject, (ii) has paid all Taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material Taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid Taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of C
Media or any of its Subsidiaries know of no basis for any such claim.

 

Section 4.19 Understandings
or Arrangements. To C Media’s knowledge, each designees of C Media acquiring the Exchange Shares is acquiring such
Exchange Shares as principal for its own account and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of the Exchange Shares (this representation and warranty not limiting such designee’s
right to sell the Exchange Shares in compliance with applicable federal and state securities laws).

 

Section 4.20 Regulation
S. C Media and all its shareholders are non-U.S. persons (as such term is defined in Rule 902 of Regulation S under the
Securities Act) and, to C Media’s knowledge, are not acquiring the Exchange Shares for the account or benefit of a U.S. person.
C Media and its shareholders will not, within six (6) months of the date of the transfer of the Exchange Shares to C Media, (i)
make any offers or sales of the Exchange Shares in the United States or to, or for the benefit of, a U.S. person (in each case,
as defined in Regulation S) other than in accordance with Regulation S or another exemption from the registration requirements
of the Securities Act, or (ii) engage in hedging transactions with regard to the Securities unless in compliance with the Securities
Act. Neither C Media nor any of the C Media’s shareholders or their respective Affiliates or any person acting on his/her
or their behalf has engaged or will engage in directed selling efforts (within the meaning of Regulation S) with respect to the
Exchange Shares, and all such persons have complied and will comply with the offering restriction requirements of Regulation S
in connection with the offering of the Exchange Shares outside of the United States.

 

Section 4.21 Net
Income. The net income of C Media and its subsidiaries to be merged into Kingtone, on a consolidated basis, for the latest
past fiscal year or in two of the last three fiscal years shall be no less than $750,000 under GAAP as defined in Section 5.10
herein.

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF KINGTONE

 

Except as set forth in
the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise
made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, Kingtone hereby
makes the following representations and warranties to C Media:

 

Section 5.1 Subsidiaries.
All of the direct and indirect subsidiaries (each, a “Subsidiary”) of Kingtone are set forth on Schedule
5.1. Except as set forth on Schedule 5.1, Kingtone owns, directly or indirectly, all of the capital stock or other equity
interests of each of its Subsidiaries free and clear of any Liens, and all of the issued and outstanding shares of capital stock
of each of Kingtone’s Subsidiaries are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities.

 

    	 	9	 

     

    

 

Section 5.2 Organization
and Qualification. Kingtone and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither Kingtone nor
any of its Subsidiaries is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of Kingtone and its Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a Material Adverse Effect on the legality, validity
or enforceability of any of Transaction Documents, (ii) a Material Adverse Effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of Kingtone and its Subsidiaries, taken as a whole, or (iii) a Material Adverse
Effect on Kingtone’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document
and no proceeding or Action has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke,
limit or curtail such power and authority or qualification.

 

Section 5.3 Authorization;
Enforcement. Kingtone has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by Kingtone and the consummation
by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of Kingtone
and no further action is required by Kingtone, the Board of Directors or Kingtone’s stockholders in connection herewith or
therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which it
is a party has been (or upon delivery will have been) duly executed by Kingtone and, when delivered in accordance with the terms
hereof and thereof, will constitute the valid and binding obligation of Kingtone enforceable against Kingtone in accordance with
its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

Section 5.4 No
Conflicts. The execution, delivery and performance by Kingtone of this Agreement and the other Transaction Documents to
which it is a party, and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict
with or violate any provision of Kingtone’s or any of its Subsidiaries’ certificate or articles of incorporation, bylaws
or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of Kingtone
or any of its Subsidiaries, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Kingtone or Subsidiary debt or otherwise) or other understanding to which or any Subsidiary is a party or by which any property
or asset of Kingtone or any of its Subsidiaries is bound or affected, or (iii) subject to the Required Approvals, conflict with
or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or
Governmental Body to which Kingtone or any of its Subsidiaries is subject (including federal and state securities laws and regulations),
or by which any property or asset of Kingtone or any of its Subsidiaries is bound or affected; except in the case of each of clauses
(ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

Section 5.5 Filings,
Consents and Approvals. Kingtone is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other Governmental Body or other Person
in connection with the execution, delivery and performance by Kingtone of the Transaction Documents, other than: (i) the filings
required pursuant to Section 6.2 of this Agreement, and (ii) the Required Approvals.

 

    	 	10	 

     

    

 

Section 5.6 Capitalization.
The capitalization of Kingtone is as set forth on Schedule 5.6. Except for the sale and issuance of the Exchange Shares
pursuant to the Transaction Documents, no Person has any right of first refusal, preemptive right, right of participation, or any
similar right in relation to the capital stock of Kingtone or any of its Subsidiaries. There are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of
the capital stock of Kingtone or any of its Subsidiaries, or Contracts, commitments, understandings or arrangements by which Kingtone
or any Subsidiary is or may become bound to issue additional shares of capital stock or capital stock of any of its Subsidiaries.
There are no outstanding securities or instruments of Kingtone or any of its Subsidiaries that contain any redemption or similar
provisions, and there are no Contracts, commitments, understandings or arrangements by which Kingtone or any of its Subsidiaries
is or may become bound to redeem a security of Kingtone or such Subsidiary. The issuance and sale of the Exchange Shares will not
obligate Kingtone or any of its Subsidiaries to issue securities to any Person (other than C Media) and will not result in a right
of any holder of Kingtone securities to adjust the exercise, conversion, exchange or reset price under any of such securities.
Kingtone does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or
agreement. All of the outstanding shares of capital stock of Kingtone are duly authorized, validly issued, fully paid and nonassessable,
have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation
of any preemptive rights or similar rights to subscribe for or purchase securities. There are no stockholders agreements, voting
agreements or other similar agreements with respect to Kingtone’s capital stock to which Kingtone is a party or, to the knowledge
of Kingtone, between or among any of the Kingtone’s stockholders.

 

Section 5.7 Litigation.
There is no Action threatened against or affecting Kingtone, any of its Subsidiaries or any of their respective properties before
or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or (ii)
could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither Kingtone
nor any of its Subsidiaries, nor any director or officer thereof, is or has been the subject of any Action involving a claim of
violation of or liability under applicable Laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge
of Kingtone, there is not pending or contemplated, any investigation by any Governmental Body involving Kingtone or any current
or former director or officer of Kingtone.

 

Section 5.8 Labor
Relations. No labor dispute exists or, to the knowledge of Kingtone, is imminent with respect to any of the employees of
Kingtone, which could reasonably be expected to result in a Material Adverse Effect. None of Kingtone’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with Kingtone or such Subsidiary, and neither
Kingtone nor any of its Subsidiaries is a party to a collective bargaining agreement, and Kingtone and its Subsidiaries believe
that their relationships with their employees are good. To the knowledge of Kingtone, no executive officer of Kingtone or any of
its Subsidiaries, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject Kingtone or
any of its Subsidiaries to any liability with respect to any of the foregoing matters. Kingtone and its Subsidiaries are in compliance
with all applicable Laws relating to employment and employment practices, terms and conditions of employment and wages and hours,
except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

Section 5.9 Compliance.
Neither Kingtone nor any of its Subsidiaries: (i) is in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a default by Kingtone or any of its Subsidiaries under),
nor has Kingtone or any of its Subsidiaries received notice of a claim that it is in default under or that it is in violation of,
any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its
properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or
order of any court, arbitrator or other Governmental Body or (iii) is or has been in violation of any statute, rule, ordinance
or regulation of any Governmental Body, including without limitation all foreign, federal, state and local Laws relating to Taxes,
environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in
each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

    	 	11	 

     

    

 

Section 5.10 Environmental
Laws. Kingtone and its Subsidiaries (i) are in compliance with all applicable Laws relating to pollution or protection
of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including
laws relating to Hazardous Materials into the environment, or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all Environmental Laws; (ii) have received
all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses;
and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii)
and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse
Effect.

 

Section 5.11 Permits.
Except as set forth on Schedule 5.11, Kingtone possesses all Permits necessary to conduct the operations or as necessary
to own, lease and operate the properties of the Kingtone Business. All Permits are valid and in full force and effect, and Kingtone
is not in violation in any material respect of the terms of any Permit. Kingtone has not received any notice of any Action to limit,
suspend, modify or revoke any Kingtone or any operation of the Kingtone Business.

 

Section 5.12 Title
to Assets.

 

(c) Except as set forth
on Schedule 5.12(a)1.1(a), Kingtone has good and valid title to all of the Kingtone Assets (or a good and valid leasehold
interest in all such items leased), in each case free and clear of all Liens. Except as described in the SEC Reports, the Kingtone
Business is not conducted through any other Person other than Kingtone and its Subsidiaries.

 

(d) Except as set forth
on Schedule 5.12(b), the Kingtone Assets (including, without limitation, the Kingtone Transferred Business Intellectual
Property Rights) constitute all the assets, properties and rights owned, used or held for use in connection with the Kingtone Business.
Kingtone owns or has the right to use all Kingtone Assets, and the Kingtone Assets are sufficient for the immediate needs of the
Kingtone Business as it is currently conducted. Other than assets that Kingtone has rights in under outstanding real estate leases
or licenses, which leases and licenses are disclosed on Schedule 5.12(b), no other assets necessary to conduct the Kingtone
Business as it is presently conducted are owned by Person other than Kingtone and its Subsidiaries.

 

Section 5.13 Intellectual
Property Rights. All of the Intellectual Property used in the Kingtone Business is set forth on Schedule 5.13. Except
as set forth on Schedule 5.13: (i) Kingtone owns and possesses all right, title and interest in and to the Intellectual
Property used in the Kingtone Business, (ii) neither Kingtone nor any of its Subsidiaries is currently infringing, or has
in the past infringed, on the intellectual property rights of any other Person, and (iii) to the knowledge of Kingtone, no
Person is currently infringing on the Intellectual Property used in the Kingtone Business.

 

Section 5.14 Insurance.
Kingtone and its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Kingtone and its Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage, except as set forth on Schedule 5.14. Neither Kingtone nor
any of its Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

Section 5.15 Transactions
With Affiliates and Employees. Except as set forth on Schedule 5.15, none of the officers or directors of Kingtone
or any of its Subsidiaries, to the knowledge of the Kingtone, none of the employees of Kingtone or any of its Subsidiaries (i)
owns any property or right, tangible or intangible, which is used in the Kingtone Business, (ii) has any claim or cause of action
against Kingtone or any of its Subsidiaries, (iii) owes any money to, or is owed any money by Kingtone or any of its Subsidiaries
or (iv) is a party to any contract or other arrangement (written or oral) with Kingtone or any of its Subsidiaries.

 

Section 5.16 Contracts.
Each Contract to which any Kingtone Subsidiary is a party or by which a Kingtone Subsidiary is bound is in full force and effect,
is in compliance with all applicable Laws and constitutes a valid, legal, binding and enforceable obligation of such Kingtone Subsidiary
and, to the knowledge of Kingtone, the other parties thereto, subject to (i) Laws of general application relating to bankruptcy,
insolvency and the relief of debtors, and (ii) rules of Laws governing specific performance, injunctive relief and other equitable
remedies.

 

    	 	12	 

     

    

 

Section 5.17 Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by Kingtone or any of its Subsidiaries
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to
the transactions contemplated by the Transaction Documents.

 

Section 5.18 Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in
a Material Adverse Effect, Kingtone and its Subsidiaries each (i) has made or filed all United States and foreign federal, state
and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which
it is subject, (ii) has paid all Taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material Taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid Taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of Kingtone
or any of its Subsidiaries know of no basis for any such claim.

 

Section 5.19 Issuance
of Exchange Shares. The Exchange Shares are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. Kingtone has
reserved from its duly authorized capital stock the maximum number of shares of ordinary stock issuable pursuant to this Agreement.
Kingtone shall duly amend its memorandum and articles of association to create a class of preferred shares having those rights
and restrictions described in Section 3.1. Kingtone shall reserve from its duly authorized capital stock the maximum number
of Preferred Shares issuable pursuant to this Agreement.

 

Section 5.20 SEC
Reports; Financial Statements. Kingtone has filed all reports, schedules, forms, statements and other documents required
to be filed by Kingtone under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for
the two years preceding the date hereof (or such shorter period as Kingtone was required by law or regulation to file such material)
(the foregoing materials, including the exhibits thereto and documents incorporated by reference therein being collectively referred
to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Reports prior to the expiration of any such extension, except as set forth on Schedule 5.19.
As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and
the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The financial statements of Kingtone included in the SEC Reports
comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except
as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of Kingtone
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

Section 5.21 Sarbanes-Oxley;
Internal Accounting Controls. Except as set forth on Schedule 5.20, Kingtone and its Subsidiaries are in compliance
with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and
all applicable rules and regulations promulgated by the Securities and Exchange Commission (the “Commission”)
thereunder that are effective as of the date hereof and as of the Closing Date. Kingtone and its Subsidiaries maintain a system
of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Kingtone and its Subsidiaries
have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for Kingtone and
its Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by Kingtone
in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods
specified in the Commission’s rules and forms. Kingtone’s certifying officers have evaluated the effectiveness of the
disclosure controls and procedures of Kingtone and its Subsidiaries as of the end of the period covered by the most recently filed
periodic report under the Exchange Act (such date, the “Evaluation Date”). Kingtone presented in its
most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of
the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of Kingtone and
its Subsidiaries that have materially affected, or are reasonably likely to materially affect, the internal control over financial
reporting of Kingtone and its Subsidiaries.

 

    	 	13	 

     

    

 

Section 5.22 Listing
and Maintenance Requirements. Kingtone’s ordinary shares and American Depository Shares are registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and Kingtone has taken no action designed to, or which to its knowledge is likely to
have the effect of, terminating the registration of Kingtone’s ordinary shares and American Depository Shares under the Exchange
Act nor has Kingtone received any notification that the Commission is contemplating terminating such registration. Except as set
forth on Schedule 5.21,Kingtone has not, in the 12 months preceding the Closing Date, received notice from any trading market
on which Kingtone’s ordinary shares and American Depository Shares are or have been listed or quoted to the effect that Kingtone
is not in compliance with the listing or maintenance requirements of such trading market. Kingtone is, and has no reason to believe
that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. Kingtone’s
ordinary shares nd American Depository Shares are currently eligible for electronic transfer through the Depository Trust Company
or another established clearing corporation and Kingtone is current in payment of the fees to the Depository Trust Company (or
such other established clearing corporation) in connection with such electronic transfer.

 

ARTICLE 6

COVENANTS OF THE PARTIES

 

Section 6.1 Access
to Records.  Between the Execution Date and the Closing Date, each Transferring Party and its Affiliates shall give
each Acquiring Party and its Representatives reasonable access to the records and Contracts pertaining to its pre-Closing Exchange
Assets and the right to copy, at the Acquiring Party’s sole cost and expense, such records and Contracts, for the purpose
of conducting a confirmatory review of the Exchange Assets.  Each Transferring Party and its Affiliates shall cooperate with
the Acquiring Party and its Representatives in the Acquiring Party’s efforts to obtain, at the Acquiring Party’s expense,
such additional information relating to the Exchange Assets as the Acquiring Party may reasonably request.

 

Section 6.2 Government
Reviews.  In a timely manner, the Transferring Parties and the Acquiring Parties shall (a) make all required
filings, prepare all required applications and conduct negotiations with each Governmental Body as to which such filings, applications
or negotiations are necessary or appropriate for the consummation of the transactions contemplated hereby and (b) provide
such information as each Party may reasonably request to make such filings, prepare such applications and conduct such negotiations. 
To the extent necessary, the Transferring Party and its Affiliates shall reasonably cooperate with and assist the Acquiring Party
in pursuing such filings, applications and negotiations, and the Acquiring Party shall reasonably cooperate with and assist the
Transferring Party with respect to such filings, applications and negotiations.  Each Party shall be responsible for and shall
make any governmental filings required to be made by such Party to consummate the transactions contemplated by this Agreement and
the Ancillary Documents.

 

Section 6.3 Public
Announcements; Confidentiality.

 

(a) No
Party shall make any press release or other public announcement regarding the existence of this Agreement, the contents hereof
or the transactions contemplated hereby without the prior written consent of the other Party, except that the foregoing shall not
restrict disclosures to the extent (i) necessary for a Party to perform this Agreement (including disclosures to Governmental
Bodies or Third Parties holding preferential rights to purchase, rights of consent or other rights that may be applicable to the
transactions contemplated by this Agreement, as reasonably necessary to provide notices, seek waivers, amendments or termination
of such rights, or seek such consents) or (ii) required by applicable securities or other Laws or regulations or the applicable
rules of any stock exchange having jurisdiction over the Parties or their respective Affiliates, provided, that,
in each case, each Party shall consult with the other Party regarding the contents of any disclosure regarding the execution of
this Agreement or Closing of the transactions contemplated hereby prior to making such disclosure, and that each Party shall use
its reasonable efforts to consult with the other Parties regarding the contents of any other disclosure.

 

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(b) Each Party shall
not, and shall cause its Affiliates not to, at any time after the Closing, disclose or use any Confidential Information, except
for the disclosure or use of such Confidential Information as may be (i) required by Law (but only to the extent so required) or
the rules or regulations of any trading market having jurisdiction over a Party’s securities, (ii) authorized in writing
by the other Party or (iii) made in connection with enforcing a Party’s rights under this Agreement. For purposes of this
Agreement, the term “Confidential Information” means all confidential or proprietary information or knowledge
belonging to, used by or that is in the possession or control of the Parties or their respective Affiliates that has been provided
to the other Party in connection with the transactions contemplated hereby, and in each case, each Party hereto hereby stipulates
to the confidentiality and materiality of such Confidential Information. Notwithstanding anything to the contrary contained in
the preceding sentence, the term “Confidential Information” shall exclude any information that (A) is
known by the public through no wrongful act of or on behalf of the receiving Party; (B) becomes known to the receiving Party after
Closing by disclosure from a third party who the receiving Party reasonably believes is under no obligation or duty of secrecy
with respect to such information (excluding any employee, agent, representative, vendor, customer or other Person with a contractual
or business relationship with the disclosing Party); (C) was, at the time of disclosure to the receiving Party, already known by
the receiving Party; or (D) is independently ascertained or developed by or for the receiving Party without use of or reference
to such information. In the event that a receiving Party is required (by oral question or request for information or documents
in any Action) to disclose any Confidential Information, such Party shall notify the disclosing Party promptly (which notification
shall include the nature of the legal requirement and the extent of the required disclosure) of the request or requirement so that
the disclosing Party may seek an appropriate protective order or waive compliance with the provisions of this Section 6.3(b).
The receiving Party must reasonably cooperate with the disclosing Party (at the disclosing Party’s sole cost and expense)
to obtain a protective order or other confidential treatment and disclose only that portion, if any, of the Confidential Information
as is required by Law.

 

Section 6.4 Operation
of Business.  From the Execution Date until the Closing Date, each Party shall:

 

(a) conduct
its business related to its pre-Closing Exchange Assets in the ordinary course consistent with such Party’s recent development
program and prudent industry practice;

 

(b) not
commit to any new operation on the Exchange Assets, or incur any contractual obligation or Liability, reasonably anticipated by
the Transferring Party to require future capital expenditures by the owner of the Exchange Assets in excess of Ten Thousand Dollars
($10,000);

 

(c)  not
voluntarily terminate, amend, execute or extend any material Contracts;

 

(d) maintain
insurance coverage on its pre-Closing Exchange Assets presently furnished by nonaffiliated Third Parties in the amounts and of
the types presently in force and not make any election to be excluded from any coverage provided by an operator for the joint account
pursuant to a joint mining agreement or similar agreement;

 

(e)  maintain
all Permits, approvals, bonds and guaranties affecting its pre-Closing Exchange Assets, and make all filings that the Transferring
Party or any of its Affiliates is required to make under applicable Law with respect to such Exchange Assets;

 

(f)   not
transfer, sell, hypothecate, encumber or otherwise dispose of any portion of its pre-Closing Exchange Assets;

 

(g)  not
create any lien, security interest or other Encumbrance with respect to its pre-Closing Exchange Assets, nor (i) enter into
any agreement for the sale, disposition or encumbrance of any portion of such Exchange Assets, nor (ii) dedicate, sell, encumber
or dispose of any Minerals produced from such Exchange Properties, if any;

 

    	 	15	 

     

    

 

(h) grant
any preferential right or other right to purchase or agree to require the consent of any Person not otherwise required to consent
to the transfer and conveyance of its pre-Closing Exchange Assets to the Acquiring Party;

 

(i) in the case of Kingtone,
not issue or authorize the issuance of any of Kingtone’s securities or rights to acquire such securities;  

 

(j) not voluntarily abandon
any of its pre-Closing Exchange Assets other than as required pursuant to the terms of a Lease or applicable Law; and

 

(k) not enter into any
agreement with respect to any of the foregoing.

 

Requests for approval of any action restricted
by this Section 6.4 shall be delivered to the applicable Acquiring Party by the Transferring Party in accordance
with the notice provisions of Section 12.2.  The Acquiring Party’s approval of any action restricted
by this Section 6.4 shall be considered granted within ten (10) days (unless a shorter time is reasonably
required by the circumstances and such shorter time is specified in the Transferring Party’s notice) after the Transferring
Party’s notice to the Acquiring Party requesting such consent unless the Acquiring Party notifies the Transferring Party
to the contrary during that period. 

 

Section 6.5 Release
of Liens.  Concurrent with the Closing, all Liens (if any) encumbering any of the Exchange Assets shall be terminated
and released by the Transferring Party or other Person, as applicable.

 

Section 6.6 Further
Assurances.  After Closing, the Parties agree to take such further actions and to execute, acknowledge and deliver
all such further documents as are reasonably requested by the other Party for carrying out the purposes of this Agreement or of
any Ancillary Document delivered pursuant to this Agreement.

 

ARTICLE 7

CONDITIONS TO CLOSING

 

Section 7.1 C
Media’s Conditions to Closing.  The obligations of C Media to consummate the transactions contemplated by this
Agreement are subject to the satisfaction (or waiver by C Media) on or before Closing of each of the following conditions precedent:

 

(a) Representations. 
The representations and warranties of Kingtone set forth in Article 5 shall be true and correct in all material
respects as of the Execution Date and as of the Closing Date as though made on and as of the Closing Date; provided, however,
that (i) any representation or warranty referring to a specified date need only be true and accurate as of such specified
date, and (ii) to the extent a representation or warranty is qualified by its terms by materiality, such qualification in
its terms is inapplicable for purposes of this Section 7.1 and the materiality qualification contained in
this Section 7.1(a) applies in lieu thereof;

 

(b) Performance. 
Kingtone shall have performed and observed, in all material respects, all covenants and agreements to be performed or observed
by it under this Agreement on or before the Closing Date;

 

(c)  No
Action.  No injunction, order or award restraining, enjoining or otherwise prohibiting the consummation of the transactions
contemplated by this Agreement or any Ancillary Document, or awarding damages in connection therewith, shall have been issued and
remain in force, and no suit, action or other proceeding by any Person seeking to restrain, enjoin or otherwise prohibit the consummation
of the transactions contemplated by this Agreement or any Ancillary Document, or seeking damages in connection therewith, shall
be pending before any Governmental Body or arbitrator;

 

(d) Consents. 
Kingtone shall have received approval for the consummation of the Agreement from its stockholders, and all required consents and
consents and approvals of any Governmental Body required for the transfer of the Kingtone Assets from Kingtone to C Media as contemplated
by this Agreement, except consents and approvals by Governmental Bodies that are customarily obtained after closing, shall have
been granted, or the necessary waiting period shall have expired, or early termination of the waiting period shall have been granted
by the applicable Governmental Body;

 

    	 	16	 

     

    

 

(e)  Third-Party
Consents; Liens.  Kingtone shall have obtained the approval of any other Person holding a Lien against any of its pre-Closing
Exchange Assets, and Kingtone shall have delivered or caused to be delivered to C Media customary documentation or evidence providing
for the release, on or before Closing, of all Encumbrances creating a security interest in all or any portion of the Kingtone Assets
in favor of any Person;

 

(f) Amendment to Memorandum
and Articles of Association. Kingtone shall have delivered proof reasonably satisfactory to C Media that it has duly amended
its memorandum and articles of association to create and authorize the Preferred Shares; and

 

(g) Nasdaq Approval.
Kingtone shall maintain its listing status with The Nasdaq Stock Market (“Nasdaq”) as of the date of this Agreement
and shall submit to Nasdaq all instruments, documents and other items necessary for the application for the listing of the Kingtone
shares on Nasdaq in connection with the transactions contemplated by this Agreement and the Ancillary Documents.

 

Section 7.2 Kingtone’s
Conditions to Closing.  The obligations of Kingtone to consummate the transactions contemplated by this Agreement
are subject to the satisfaction (or waiver by Kingtone) on or before Closing of each of the following conditions precedent:

 

(a) Representations. 
The representations and warranties of C Media set forth in Article 4 shall be true and correct in all material
respects as of the Execution Date and as of the Closing Date as though made on and as of the Closing Date; provided, however,
that (i) any representation or warranty referring to a specified date need only be true and accurate as of such specified
date, and (ii) to the extent a representation or warranty is qualified by its terms by materiality, such qualification in
its terms is inapplicable for purposes of this Section 7.2 and the materiality qualification contained in
this Section 7.2(a) applies in lieu thereof;

 

(b) Performance. 
C Media shall have performed and observed, in all material respects, all covenants and agreements to be performed or observed by
it under this Agreement on or before the Closing Date;

 

(c)  No
Action.  No injunction, order or award restraining, enjoining or otherwise prohibiting the consummation of the transactions
contemplated by this Agreement or any Ancillary Document, or awarding damages in connection therewith, shall have been issued and
remain in force, and no suit, action or other proceeding by any Person seeking to restrain, enjoin or otherwise prohibit the consummation
of the transactions contemplated by this Agreement or any Ancillary Document, or seeking damages in connection therewith, shall
be pending before any Governmental Body or arbitrator;

 

(d) Consents. 
C Media shall have received all required consents and consents and approvals of any Governmental Body required for the transfer
of the C Media Assets from C Media to Kingtone as contemplated by this Agreement, except consents and approvals by Governmental
Bodies that are customarily obtained after closing, shall have been granted, or the necessary waiting period shall have expired,
or early termination of the waiting period shall have been granted by the applicable Governmental Body; and

 

(e) Nasdaq Approval.
C Media shall provide Kingtone all instruments, documents and other items necessary for the application for the listing of the
Kingtone shares on Nasdaq in connection with the transactions contemplated by this Agreement and the Ancillary Documents.

 

 

ARTICLE 8

CLOSING

 

Section 8.1 Time
and Place of Closing.  Consummation of the purchase and sale transaction as contemplated by this Agreement (the “Closing”),
shall, unless otherwise agreed to in writing by the Parties hereto, take place at remotely via the electronic exchange of documents
at 10:00 a.m., New York time, on the first Business Day after all conditions in Article  7 to be satisfied
or waived as of such time(other than those conditions that by their terms are to be satisfied at the Closing, but subject to their
satisfaction or waiver), or at such other time and at such other place as mutually agreed upon by the Parties.  As used herein,
the “Closing Date” shall mean the date on which the Closing actually occurs.

 

    	 	17	 

     

    

 

Section 8.2 Obligations
of C Media at Closing.  At the Closing, upon the terms and subject to the conditions of this Agreement, and subject
to the simultaneous performance by Kingtone of its obligations pursuant to Section 8.3, C Media shall deliver
or cause to be delivered to Kingtone the following:

  

(a)  a
certificate by an authorized officer of C Media, dated as of Closing, certifying on behalf of C Media that the conditions set forth
in Section 7.1(a), Section 7.1(b) and Section 7.1(c) have been fulfilled;

 

(b)  where
approvals are received by C Media pursuant to Section 7.1(d) and Section 7.1(e), copies
of those approvals; and

 

(c)  all
other instruments, documents and other items necessary to effectuate the terms of this Agreement.

 

Section 8.3 Obligations
of Kingtone at Closing.  At the Closing, upon the terms and subject to the conditions of this Agreement, and subject
to the simultaneous performance by C Media of its obligations pursuant to Section 8.2, Kingtone shall deliver
or cause to be delivered to C Media the following:

 

(a)  a
certificate by an authorized officer of Kingtone, dated as of Closing, certifying on behalf of Kingtone that the conditions set
forth in Section 7.2(a), Section 7.2(b) and Section 7.2(c) have been
fulfilled;

 

(b) one
or more duly executed certificates in the name of C Media’s designees evidencing the Exchange Shares;

 

(c)  where approvals
are received by Kingtone pursuant to Section 7.2(d) and Section 7.2(e), copies of those
approvals; and

 

(d)  all
other instruments, documents and other items necessary to effectuate the terms of this Agreement.

 

 

ARTICLE 9

TERMINATION

 

Section 9.1 Termination. 
This Agreement may, by written notice given before the Closing, be terminated:

 

(a) by mutual consent
of the Parties;

 

(b) by C Media (so long
as C Media is not then in material breach of any of its representations, warranties or covenants contained in this Agreement) if
there has been a breach of any of Kingtone’s representations, warranties or covenants contained in this Agreement, which
would result in the failure of a condition set forth in Section 7.1 or Section 7.2, and which breach has not been
cured within five (5) Business Days after written notice of the breach has been delivered to Kingtone from C Media;

 

(c) by either C Media
or Kingtone if any Governmental Body has issued a nonappealable final judgment or taken any other nonappealable final action, in
each case having the effect of permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this
Agreement, or if Kingtone’s stockholders withhold approval of the transactions contemplated by the Transaction Documents;
provided, however, that the right to terminate this Agreement under this Section 9.1(c) will not be available
to any party whose failure to fulfill any covenant under this Agreement has been the cause of or resulted in the action or event
described in this Section 9.1(c)occurring; or

 

    	 	18	 

     

    

 

(d) by C Media if the
Closing has not occurred (other than through the failure of C Media to comply fully with its obligations under this Agreement)
on or before July 31, 2018.

 

Section 9.2 Effect
of Termination.  If this Agreement is terminated pursuant to Section 9.1, this Agreement and all rights
and obligations of the parties under this Agreement automatically end without Liability against any Party or its Affiliates, except
that (a) Section 6.3 (Public Announcements; Confidentiality),Article 12(Miscellaneous) and this Section
9.2 will remain in full force and survive any termination of this Agreement and (b) if this Agreement is terminated by a Party
because of the intentional breach of this Agreement by the other Party or because one or more of the conditions to the terminating
Party’s obligations under this Agreement is not satisfied as a result of the other Party’s intentional failure to comply
with its obligations under this Agreement, the terminating Party’s right to pursue all legal remedies will survive such termination
unimpaired; provided, that, notwithstanding the foregoing, nothing herein shall be deemed to impair the rights of any Party
to obtain any injunction or prevent breaches of, or compel specific performance by any other Party of its obligations under, this
Agreement.

 

ARTICLE 10

ASSUMPTION; INDEMNIFICATION

 

Section 10.1
Survival of Representations and Warranties.
The representations and warranties of the Parties contained in this Agreement (whether or not contained in Article 4 or
Article 5) shall survive the Closing for a period of twelve (12) months after the Closing Date (the “General
Survival Period”), except that (i) the representations and warranties set forth in Sections 4.2 and
5.2 (Organization and Qualification), 4.5 and 5.5(Filings, Consents and Approvals),4.6
and 5.6(Capitalization), 4.12 and 5.12 (Title to Assets) , 4.15 and 5.15 (Transactions
With Affiliates), 4.16 and 5.16(Certain Fees), and 4.3 and 5.3 (Authorization; Enforcement),
the “Fundamental Representations”) shall survive indefinitely and (ii) the representations set
forth in Sections 4.17 and 5.17 (Tax Matters) (“Tax Representation”) shall survive
the Closing until sixty (60) days past the expiration of the applicable statute of limitations. All covenants set forth herein
shall survive the Closing in accordance with their respective terms. The obligations with respect to any Losses suffered relating
to fraud, intentional inaccuracy or intentional misrepresentation of a material fact or the volitional withholding of any material
fact by any Party shall not expire.

 

Section 10.2  Acquiring
Party’s Assumption of Obligations.  At Closing, each Party (specifically, C Media, with respect to the Kingtone
Assets, and Kingtone, with respect to the C Media Assets) shall assume and hereby agrees to fulfill and perform any and all obligations
and pay and discharge any and all Liabilities with respect to the Exchange Assets acquired by the respective Acquiring Parties,
including the following (the “Assumed Obligations”):

 

(a) any
and all Liabilities caused by or arising out of or resulting from the ownership, use or operation of the Exchange Assets on or
after the Closing Date;

 

(b) any
and all of the Transferring Party’s express and implied obligations and covenants under the terms of the Contracts and all
other obligations to which the acquired Exchange Assets are subject;

 

(c)  responsibility
for compliance with all applicable Laws pertaining to the acquired Exchange Assets, and the procurement and maintenance of all
Permits required by any Governmental Body in connection with the ownership or development of the acquired Exchange Assets after
Closing; and

 

(d)   any
Asset Taxes (including applicable penalties and interest) for which the Acquiring Party has agreed to be responsible hereunder.

 

Each Transferring Party (specifically,
C Media, with respect to the C Media Assets, and Kingtone, with respect to the Kingtone Assets) shall remain responsible for all
Liabilities incurred by the Transferring Party in connection with its ownership or operation of such Exchange Assets before the
Closing, except (i) those for which the Acquiring Party is obligated to indemnify the Transferring Party pursuant to this
Agreement, and (ii) those which the Acquiring Party assumes pursuant to this Section 10.2.

 

    	 	19	 

     

    

 

Section 10.3 General
Indemnification.

 

(a) If, after the Closing
Date, C Media and/or its Affiliates and its and their respective officers, directors, employees, equityholders, operating partners,
partners, managers, representatives, and/or agents and their heirs, successors and permitted assigns (each a “C Media
Indemnitee” and together the “C Media Indemnitees”) suffer, without any duplication, any
Losses as a result of, in connection with, or arising out of (i) any inaccuracy or breach of any representation or warranty
made by Kingtone contained in this Agreement or any certificate delivered hereto, (ii) any failure by Kingtone to perform
any of Kingtone’s covenants or agreements contained herein, or (iii) the Excluded Liabilities, then, subject to the other
provisions of this Article10, Kingtone shall indemnify, defend and save and hold harmless the C Media Indemnitees for such
Loss as and when suffered or paid, whether directly or indirectly.

 

(b) After the Closing,
C Media agrees to indemnify, defend and hold Kingtone and/or its Affiliates and their respective officers, directors, employees,
equityholders, operating partners, partners, managers, representatives, and/or agents and their heirs, successors and permitted
assigns (each a “Kingtone Indemnitee” and together the “Kingtone Indemnitees”)
harmless from any Loss as and when suffered or paid, directly or indirectly, as a result of, in connection with, or arising out
of (i) any inaccuracy or breach of any representation or warranty made by C Media contained in this Agreement or any certificate
delivered hereto, (ii) any failure by C Media to perform any of C Media’s covenants or agreements contained herein,
or (iii) the Excluded Liabilities, then, subject to the other provisions of this Article10, Kingtone shall indemnify, defend
and save and hold harmless the Kingtone Indemnitees for such Loss as and when suffered or paid, whether directly or indirectly.

 

(c) The obligations
to indemnify and hold harmless pursuant to Sections 10.3(a) and (b) shall survive the consummation of the transactions
contemplated hereby for the period set forth in Section 10.1, except for claims for indemnification pursuant to any such
clauses asserted prior to the end of such survival period, which such claims shall survive until final resolution thereof.

 

(d) For purposes of
determining whether any breach or inaccuracy of any representation or warranty has occurred pursuant to this Agreement, any Loss
has occurred, or the amount of any such Loss, the representations, warranties, covenants and agreements of the Parties set forth
in this Agreement and the Transaction Documents will be considered without regard to any materiality or Material Adverse Effect
qualification set forth.

 

Section 10.4 Indemnification
Actions.  All claims for indemnification under this Article 10 shall be asserted and resolved
as follows:

 

(a) Promptly
after receipt by a Person entitled to indemnity under this Article 10 (an “Indemnified Person”)
of notice of the assertion of a Third Party Claim against it, such Indemnified Person shall promptly give written notice to the
Person obligated to indemnify against such Third Party Claim (an “Indemnifying Person”) of the assertion
of such Third Party Claim; provided, that the failure to timely notify the Indemnifying Person will not relieve the Indemnifying
Person of any Liability that it may have to any Indemnified Person, except to the extent of actual prejudice arising from such
failure.

 

(b) If
an Indemnified Person gives notice to the Indemnifying Person pursuant to Section 10.4(a) of the assertion
of a Third Party Claim, then the Indemnifying Person shall be entitled to assume the defense of such Third Party Claim with counsel
of its choosing that is reasonably acceptable to the Indemnified Person (it being agreed that the Indemnifying Person’s counsel
as of the date hereof shall be reasonably acceptable to the Indemnified Person); provided, however, that (a) the Indemnifying
Person shall not be entitled to assume defense of a Third Party Claim if the Indemnified Person has one (1) or more defenses
that cannot be asserted by the Indemnifying Person and such inability would actually prejudice the Indemnified Person, (b) the
Indemnifying Person shall not be entitled to assume defense of a Third Party Claim if such claim is being brought by a Governmental
Body or seeks an injunction or provisional relief and (c) as a condition to assuming the defense of such Third Party Claim,
the Indemnifying Person must acknowledge and agree in writing that each Indemnified Person will be indemnified and held harmless
hereunder with respect to the full amount of any and all Damages the Indemnified Person may suffer or incur arising out of or relating
to the Third Party Claim (regardless of any limitations set forth herein).  After notice from the Indemnifying Person to the
Indemnified Person of its election to assume the defense of such Third Party Claim, the Indemnifying Person shall not be liable
to the Indemnified Person under this Article 10 for any fees of other counsel or any other expenses with
respect to the defense of such Third Party Claim.  If the Indemnifying Person assumes the defense of a Third Party Claim,
then no compromise or settlement of such Third Party Claims may be effected by the Indemnifying Person without the Indemnified
Person’s express written consent unless (A) there is no finding or admission of any wrongdoing by the Indemnified Person,
(B) the sole relief provided is monetary Damages that are paid in full by the Indemnifying Person, and (C) the claim
does not relate to Taxes.  If notice is given to an Indemnifying Person of the assertion of any Third Party Claim and the
Indemnifying Person does not, within fifteen (15) Business Days after the Indemnified Person’s notice is given, give notice
to the Indemnified Person of the Indemnifying Person’s election to assume the defense of such Third Party Claim, then the
Indemnifying Person shall be bound by any determination made in such Third Party Claim or any compromise or settlement reasonably
effected by the Indemnified Person.

 

    	 	20	 

     

    

 

(c)  With
respect to any Third Party Claim subject to indemnification under this Article 10: (i) both the Indemnified
Person and the Indemnifying Person, as the case may be, shall keep the other fully informed of the status of such Third Party Claim
and any related legal actions at all stages thereof where such other person is not represented by its own counsel, and (ii) each
Party agrees (at its own expense) to render to each other such assistance as a Party may reasonably require of another and to cooperate
in good faith with each other in order to ensure the proper and adequate defense of any Third Party Claim.

 

(d) With
respect to any Third Party Claim subject to indemnification under this Article 10, the Parties agree to cooperate
in such a manner as to preserve in full (to the extent possible) the confidentiality of all Confidential Information and the attorney-client
and work-product privileges of the other Party.  In connection therewith, each Party agrees that:  (i) it will use
its reasonable efforts, in respect of any Third Party Claim in which it has assumed or participated in the defense, to avoid production
of Confidential Information (consistent with applicable Law and rules of procedure); and (ii) all communications between
any Party and counsel responsible for or participating in the defense of any Third Party Claim shall, to the extent possible, be
made so as to preserve any applicable attorney-client or work-product privilege.

 

(e) With respect to a
claim between the Parties, if any Indemnified Person believes that such Indemnified Person is entitled to indemnification pursuant
to this Article 10other than in connection with a Third Party Claim, such Indemnified Person shall give the appropriate
Indemnifying Person notice of such claim stating the amount of Losses, if known, and the method of computation thereof, all with
reasonable particularity and containing a reference to the provisions of this Agreement under which such right of indemnification
is claimed or arises (each, a “Claim Notice”). The Indemnifying Person shall have fifteen (15) days after
the receipt of such notice to deliver a written response noting that it disagrees with the amount or the method of determination
to the indemnification obligation in the Claim Notice, and specifying in reasonable detail the basis for such disagreement (each,
a “Reply Certificate”). If a Reply Certificate is timely delivered pursuant to this Section 10.4(e)
but only disputes a portion of the claims set forth in the Claim Notice, any claim that is not disputed in the Reply Certificate
shall be deemed to have acknowledged and authorized such Indemnified Person’s right to receive the amount specified in the
applicable Claim Notice. If a Reply Certificate is not timely delivered with respect to any Claim Notice, then the Indemnifying
Person shall be deemed to have acknowledged and authorized such Indemnified Person’s right to receive the amount specified
in the applicable Claim Notice. If a Reply Certificate pursuant is timely delivered in response to any Claim Notice, then the Indemnifying
Person and the Indemnified Person shall negotiate in good faith to resolve the matter for a period of thirty (30) days prior to
the initiation of any litigation in respect thereof.

 

Section 10.5 
Limitation on Actions. In no event shall any Indemnified Person be entitled to duplicate compensation with respect
to the same Damage, Liability, loss, cost, expense, claim, award or judgment under more than one provision of this Agreement and
the Ancillary Documents.

 

ARTICLE 11

TAX MATTERS

 

Section 11.1 Tax
Filings.  The Transferring Party shall be responsible for filing with the appropriate Governmental Body the applicable
Tax Returns for Asset Taxes which are required to be filed on or before the Closing Date and paying the Taxes reflected on such
Tax Returns as due and owing.  The Acquiring Party shall be responsible for filing with the appropriate taxing authorities
the applicable Tax Returns for all Asset Taxes that are required to be filed after the Closing Date and paying the Taxes reflected
on such Tax Returns as due and owing; provided, however, that in the event that the Transferring Party is required
by applicable Law to file a Tax Return with respect to such Asset Taxes after the Closing Date which includes all or a portion
of a tax period for which the Acquiring Party is liable for such Taxes, following the Transferring Party’s request, the Acquiring
Party shall promptly pay to the Transferring Party all such Taxes allocable to the period or portion thereof beginning at or after
the Closing Date (but only to the extent that such amounts have not already been accounted for under Section 11.2),
whether such Taxes arise out of the filing of an original return or a subsequent audit or assessment of Taxes.  The Transferring
Party shall be entitled to all Tax credits and Tax refunds which relate to any such Taxes allocable to any tax period, or portion
thereof, ending before the Closing Date.  The Acquiring Party shall be entitled to all Tax Credits and Tax refunds which related
to any such Taxes allocable to any tax period, or portion thereof, ending on or after the Closing Date.

 

    	 	21	 

     

    

 

Section 11.2 Current
Tax Period Taxes.  Asset Taxes assessed with respect to the Tax period in which the Closing occurs (the “Current
Tax Period”) shall be apportioned between the Transferring Party and the Acquiring Party as of the Closing Date with
(a) the Transferring Party being obligated to pay a proportionate share of the actual amount of such Taxes for the Current
Tax Period determined by multiplying such actual Taxes by a fraction, the numerator of which is the number of
days in the Current Tax Period prior to the Closing Date and the denominator of which is the total number of days in the Current
Tax Period and (b) the Acquiring Party being obligated to pay a proportionate share of the actual amount of such Taxes for
the Current Tax Period determined by multiplying such actual Taxes by a fraction, the numerator of which is the
number of days in the Current Tax Period on and after the Closing Date and the denominator of which is the total number of days
in the Current Tax Period.  In the event that the Acquiring Party or the Transferring Party makes any payment for which it
is entitled to reimbursement under this Article 11, the applicable Party shall make such reimbursement promptly
but in no event later than ten (10) days after the presentation of a statement setting forth the amount of reimbursement to
which the presenting Party is entitled along with such supporting evidence as is reasonably necessary to calculate the amount of
the reimbursement.

 

ARTICLE 12

MISCELLANEOUS

 

Section 12.1 Counterparts. 
This Agreement may be executed in counterparts, each of which shall be deemed an original instrument, but all such counterparts
together shall constitute but one agreement.  Each Party’s delivery of an executed counterpart signature page by
facsimile (or email) is as effective as executing and delivering this Agreement in the presence of the other Party.  No Party
shall be bound by the terms and provisions of this Agreement until such time as all of the Parties have executed counterparts of
this Agreement.

 

Section 12.2 Notice. 
All notices and other communications which are required or may be given pursuant to this Agreement must be given in writing, in
English and delivered personally, by courier, or by facsimile followed by delivery by courier, as follows:

 

	If to C Media:	 
	 	
        Attn: Weili Chen

        LAB32, Guanghua Road3Q,

        No. 9 Guanghua Road,

        Chaoyang District,

        Beijing, P.R. China

        Email: chenwl@cmmobi.com

	 	 
	With a copy to (which shall not constitute notice):
	 	 
	 	Garvey Schubert Barer
	 	Attn: Jeffrey Li
	 	1000 Potomac Street NW
	 	Suite 200
	 	Washington, D.C. 20007-3501
	 	Email: jli@gsblaw.com

 

    	 	22	 

     

    

 

	If to Kingtone:
	 	
         Attn: Zhuoyu Li

        Floor 3, Borough A, Block A

        181, South Taibai Road,

        Xi’an, Shaanxi Province

        P.R. China

        Email: lizhuoyu@900lh.com

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

        Attn: Elizabeth Fei Chen

        7 Times Square

        New York, NY 10036

        Email: echen@pryorcashman.com

 

Any Party may change its address for notice
by notice to the other Parties in the manner set forth above.  All notices shall be deemed to have been duly given at the
time of receipt by the Party to which such notice is addressed.

 

Section 12.3
Expenses.  Except as otherwise set forth in this Agreement, each Party hereto shall pay its own expenses incident
to this Agreement and the transactions contemplated herein.

 

Section 12.4 Governing
Law; Jurisdiction.    All questions concerning the construction, validity, enforcement and interpretation
of the Agreement and the other Transaction Documents shall be governed by and construed and enforced in accordance with the internal
laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Actions
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction
Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members,
employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough
of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives,
and agrees not to assert in any Action, any claim that it is not personally subject to the jurisdiction of any such court, that
such Action is improper or is an inconvenient venue for such Action. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such Action by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by law.

 

    	 	23	 

     

    

 

Section 12.5 Waivers. 
Any failure by a Party to comply with any of its obligations, agreements or conditions herein contained may only be waived by the
Party to whom such compliance is owed by a written instrument signed by such Party and expressly identified as a waiver, but not
in any other manner.  No waiver of, consent to a change in, or any delay in timely exercising any rights arising from, any
of the provisions of this Agreement shall be deemed or shall constitute a waiver of, or consent to a change in, other provisions
hereof (whether or notsimilar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

Section 12.6 Assignment. 
No Party shall assign all or any part of this Agreement, nor shall any Party assign or delegate any of its rights or duties hereunder,
without the prior written consent of the other Parties (which consent may not be unreasonably withheld) and any assignment or delegation
made without such written consent shall be void.  Subject to the foregoing, this Agreement shall be binding upon and inure
to the benefit of the Parties and their respective successors and permitted assigns.

 

Section 12.7 Entire
Agreement.  This Agreement (including, for purposes of certainty, the Appendix, Exhibits and Schedules attached hereto),
the Ancillary Documents to be executed hereunder, and other Transaction Documents, constitute the entire agreement among the Parties
pertaining to the subject matter hereof, and supersede all prior agreements, understandings, negotiations and discussions, whether
oral or written, of the Parties pertaining to the subject matter hereof.

 

Section 12.8 Amendment. 
This Agreement may be amended or modified only by an agreement in writing executed by all Parties, their respective successors
or permitted assigns and expressly identified as an amendment or modification hereto.

 

Section 12.9 No
Third-Party Beneficiaries.  Nothing in this Agreement shall entitle any Person, other than the Parties, to any claim,
cause of action, remedy or right of any kind.

 

Section 12.10 Construction. 
The Parties acknowledge that (a) each Party has had the opportunity to exercise business discretion in relation to the negotiation
of the details of the transaction contemplated hereby, (b) this Agreement is the result of arm’s-length negotiations
from equal bargaining positions, and (c) the Parties and their respective legal counsel equally participated in the preparation
and negotiation of this Agreement.  Any rule of construction that a contract be construed against the drafter shall not
apply to the interpretation or construction of this Agreement.

 

Section 12.11 Delivery
of Records.  As soon as reasonably practicable after Closing, but in no event later than ten (10) Business Days
following Closing, each Transferring Party, at the Transferring Party’s cost and expense, shall deliver originals of the
records pertaining to the Exchange Assets transferred by the Transferring Party to the Acquiring Party.

 

Section 12.12 Severability. 
Should any provision of this Agreement be held by a court of law to be illegal, invalid or unenforceable, such provision shall
be replaced by such provision as most closely reflects the intent of the invalid provision, and the legality, validity and enforceability
of the remaining provisions of this Agreement will not be affected or impaired thereby.

 

[signature page follows]

 

    	 	24	 

     

    

 

IN WITNESS WHEREOF, each Party has
caused this Agreement to be duly executed by its authorized representative as of the Execution Date.

 

	 	C MEDIA:
	 	 
	 	C MEDIA LIMITED,
	 	a corporation organized under the laws of the People’s Republic of China
	 	 
	 	By:	/s/ Yusong Song
	 	Name:	 
	 	Title:	 
	 	 	 
	 	KINGTONE:
	 	 
	 	KINGTONE WIRELESSINFO SOLUTION HOLDING LTD.,
	 	a corporation organized under the laws of the British Virgin Islands
	 	 
	 	By:	/s/ Zhuoyu (Richard) Li
	 	Name:	Zhuoyu (Richard) Li
	 	Title:	Chairman

 

[Signature Pages to Asset Exchange
Agreement]

 

    	 	25	 

     

    

 

APPENDIX A

 

DEFINITIONS

 

“Action”
has the meaning set forth in Section 4.7.

 

“Acquiring
Party” means, with respect to the C Media Assets, Kingtone; and, with respect to the Kingtone Assets, C Media.

 

“Affiliate”
means, with respect to any Person, any Person that directly or indirectly Controls, is Controlled by, or is under common Control
with, such Person.

 

“Agreement”
has the meaning set forth in Preamble of this Agreement.

 

“Ancillary
Documents” means all agreements, documents, instruments and certificates contemplated by this Agreement or otherwise
necessary or appropriate in order to fully effectuate the terms and conditions of this Agreement and to perform and consummate
the transactions contemplated by this Agreement.

 

“Asset
Taxes” means ad valorem, property, excise, sales, use, severance, production or similar Taxes (including any interest,
fine, penalty or additions to Tax imposed by a Governmental Body in connection with such Taxes) based upon acquisition, operation
or ownership of the Exchange Assets or the production of Minerals therefrom; but excluding, for the avoidance of doubt, income,
business activity, capital gains or franchise Taxes.

 

“Assumed
Obligations” has the meaning set forth Section 10.2.

 

“Business
Day” means each calendar day except Saturdays, Sundays, and Federal holidays.

 

“C Media”
has the meaning set forth in the Preamble of this Agreement.

 

“C Media
Assets” has the meaning set forth in Section 2.2.

 

“C Media
Business” has the meaning set forth in Section 2.2.

 

“C Media
Business Intellectual Property Rights” has the meaning set forth in Section 2.2.

 

“C Media
Indemnitee” has the meaning set forth in Section 10.3.

 

“Casualty
Loss” means (i) any loss, damage or destruction of an Exchange Asset occurring during the period between the
Execution Date and the Closing Date for any reason, including any act of God, fire, explosion, collision, earthquake, windstorm,
tornado, flood or other casualty, but excluding any loss, damage or destruction as a result of depreciation, ordinary wear and
tear and any change in condition of an Exchange Asset for production of Minerals through normal depletion, or (ii) any loss
or damage resulting from any portion of an Exchange Asset being taken in condemnation or under right of eminent domain.

 

“CERCLA”
means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et-seq., as amended.

 

“Claim
Notice” has the meaning set forth in Section 10.4.

 

“Closing”
has the meaning set forth in Section 8.1.

 

“Closing
Date” has the meaning set forth in Section 8.1.

 

“Confidential
Information” has the meaning set forth in Section 6.3.

 

“Contract”
means, with respect to any Person, any contract, agreement, deed, mortgage, lease or license, whether written or oral, which pertains
to such Person or any material Assets of such Person. .

 

    	 	26	 

     

    

 

“Control”
means the ability to direct the management and policies of a Person through ownership of voting shares or other equity rights,
pursuant to a written agreement, or otherwise.  The terms “Controls” and “Controlled by” and other
derivatives shall be construed accordingly.

 

“Current
Tax Period” has the meaning set forth in Section 11.2.

 

“Damages”
means the amount of any actual Liability, loss, cost, expense, claim, award or judgment incurred or suffered by any Person (to
be indemnified under this Agreement) arising out of or resulting from the indemnified matter, whether attributable to personal
injury or death, property damage, contract claims (including contractual indemnity claims), torts, or otherwise, including reasonable
fees and expenses of attorneys, consultants, accountants or other agents and experts reasonably incident to matters indemnified
against, and the reasonable costs of investigation and/or monitoring of such matters, and the reasonable costs of enforcement of
the indemnity; provided, however, that the term “Damages” shall not include (i) loss of profits
or other consequential damages suffered by the Party claiming indemnification, or any punitive damages (except as otherwise provided
herein), or (ii) any Liability, loss, cost, expense, claim, award or judgment to the extent resulting from or to the extent
increased by the actions or omissions of any indemnified Person after the Closing Date.

 

“Encumbrance”
means a mortgage, pledge, hypothecation, lien, easement, right-of-way, encroachment, covenant, condition, right of re-entry, lease,
license, assignment, option, claim or other encumbrance or charge, whether or not registered or registrable, but does not include
a Permitted Encumbrance.

 

“Evaluation
Date” has the meaning set forth in Section 5.20.

 

“Environmental
Laws” has the meaning set forth in Section 4.10. 

 

“Exchange”
has the meaning set forth in Section 2.1.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exchange
Assets” has the meaning set forth in Section 2.1.

 

“Exchange
Shares” has the meaning set forth in Section 2.1.

 

“Exchange
Properties” means the C Media Properties, or it may be used herein to refer to each individually, as the context
requires.

 

 

“Effective
Date” has the meaning set forth in Preamble of this Agreement.

 

“GAAP”
has the meaning set forth in Section 5.19.

 

“Fundamental
Representations” has the meaning set forth in Section 10.1.

 

“General
Survival Period” has the meaning set forth in Section 10.1.

 

“Governmental
Body” means any instrumentality, subdivision, court, administrative agency, commission, official, exchange, trading
market or other authority of the United States or any other country or any state, province, prefect, municipality, locality or
other government or political subdivision thereof, or any quasi-governmental or private body exercising any administrative, executive,
judicial, legislative, police, regulatory, taxing, importing or other governmental or quasi-governmental authority.

 

    	 	27	 

     

    

 

“Hazardous
Materials” has the meaning set forth in Section 4.10. 

 

“Indemnified
Person” has the meaning set forth in Section 10.4(a).

 

“Indemnifying
Person” has the meaning set forth in Section 10.4(a).

 

“Intellectual
Property” means (1) copyrights (registered or unregistered) and copyrightable works and registrations and applications
for registration thereof, including software; (2) trade secrets and other confidential information, know-how, processes and
techniques, formulas, research and development information, drawings, specifications, designs, plans, and customer and supplier
lists and information; (3) other intellectual property rights; and (4) copies and tangible embodiments thereof (in whatever
form or medium).

 

“Kingtone”
has the meaning set forth in the Preamble of this Agreement.

 

“Kingtone
Assets” has the meaning set forth in Section 2.3.

 

“Kingtone
Business” has the meaning set forth in Section 2.3.

 

“Kingtone
Business Intellectual Property Rights” has the meaning set forth in Section 2.3.

 

“Kingtone
Indemnitee” has the meaning set forth in Section 10.3.

 

“Kingtone
Transferred Employees” has the meaning set forth in Section 2.3.

 

“Laws”
means all Permits, statutes, rules, regulations, ordinances, orders, and codes of Governmental Bodies. 

 

“Liability”
(and with the correlative meaning, “Liabilities”) means all losses, costs, expenses, obligations, damages,
fines, fees, penalties, and other liabilities (or contingencies that have not yet become liabilities), whether absolute, accrued,
matured, contingent (or based upon any contingency), known or unknown, fixed or otherwise, or whether due or to become due.

 

“Liens”
means any mortgage, pledge, security interest, encumbrance, levy, deed of trust, lien, charge of any kind, encroachment, restrictive
covenant, subordination agreement in favor of another Person, encumbrance, tenancy or other possessory interest, conditional sale
or other title retention agreement, assessment or other defect in title.

 

“Material
Adverse Effect” has the meaning set forth in Section 4.2.

 

“Party”
and “Parties” have the meanings set forth in the Preamble of this Agreement.

 

“Permits”
means any permits, licenses, approvals, certificates of authority, franchises, concessions, registrations, consents, or similar
qualifications or authorizations issued, granted or given by or under the authority of, or filings with, any Governmental Body.

  

“Person”
means any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated
organization, Governmental Body or any other entity.

  

“Preferred
Shares” has the meaning set forth in Section 2.1.

 

“Reply
Certificate” has the meaning set forth in Section 10.4.

 

“Representatives”
means (i) partners, employees, personnel, officers, directors, members, equity owners and counsel of a Party or any of its
Affiliates; or (ii) any consultant or agent retained by a Party or the parties listed in subsection (i) above.

 

    	 	28	 

     

    

 

“Required
Approvals” has the meaning set forth in Section 4.5.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“SEC Reports”
has the meaning set forth in Section 5.19.

 

“Subsidiary”
has the meaning set forth in Section 4.1. 

 

“Tax Representation”
has the meaning set forth in Section 10.1.

 

“Tax Return”
means any return (including any information return), report, statement, schedule, notice, form, election, estimated Tax filing,
claim for refund or other document (including any attachments thereto and amendments thereof) filed with or submitted to, or required
to be filed with or submitted to, any Governmental Body with respect to any Tax.

 

“Taxes”
means all federal, state, local, and foreign income, profits, franchise, sales, use, ad valorem, property, severance, production,
excise, stamp, documentary, real property transfer or gain, gross receipts, goods and services, registration, capital, transfer,
or withholding taxes or other assessments, duties, fees or charges imposed by any Governmental Body, including any interest, penalties
or additional amounts which may be imposed with respect thereto.

  

“Third
Party” means any Person other than a Party to this Agreement or an Affiliate of a Party to this Agreement.

 

“Third
Party Claim” means any claim against any Indemnified Person by a Third Party.

 

“Topsky
Interests” has the meaning set forth in Section 2.3(h).

 

“Transferring
Party” means, with respect to the C Media Assets, C Media; and, with respect to the Kingtone Assets, Kingtone.

 

“Transaction
Documents” has the meaning set forth in Section 4.2.

 

“Xi’an
Softech” has the meaning set forth in Section 2.3.

 

    	 	29Exhibit 4.14

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of January 25, 2018, between Redstone YYL Management Limited, a company incorporated
in British Virgin Islands (the “Purchaser”), and each selling stockholder identified on the signature pages hereto
(each, including its successors and assigns, a “Stockholder” and collectively the “Stockholders”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section
5 of the Securities Act contained in Section 4(a)(2) thereof and/or Regulations D and S thereunder, the Stockholders, severally
and not jointly, desire to sell to Purchaser, and Purchaser desires to purchase from the Stockholders, those securities of Kingtone
Wirelessinfo Solution Holding Ltd., a corporation organized under the laws of the British Virgin Islands (the “Company”),
listed on Schedule A hereto (the “Securities”) as more fully described in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Purchaser and each Stockholder agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1          Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount and (ii)
the Stockholders’ obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later
July 30, 2018.

 

    	 	1	 

    

    

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the ordinary shares of the Company, par value $0.01 per share, the American Depository Shares of the Company,
each representing one ordinary share, and any other class of securities into which such securities may hereafter be reclassified
or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

    	 	2	 

    

    

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities“
shall have the meaning ascribed to such term in the recitals.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subscription
Amount” means, as to each Stockholder, the aggregate amount to be paid for the Securities sold hereunder as specified
across from such Stockholder’s name in Schedule A hereto under the heading “Subscription Amount,” in United
States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth in the SEC Reports, and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof, including all entities effectively controlled by the Company
through contractual arrangements, including but not limited to Xi’an Kingtone Information Technology Co., Ltd.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
or the New York Stock Exchange (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

    	 	3	 

    

    

 

ARTICLE II.

PURCHASE AND SALE

 

2.1          Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, the Stockholders, severally and not jointly,
agree to sell, and the Purchaser agrees to purchase the Securities listed on Schedule A hereto. Upon receiving Purchaser’s
Subscription Amount on the Closing Date and the delivery by the Purchaser and each Stockholder of the other items set forth in
Section 2.2 at the Closing, each Stockholder shall deliver to Purchaser its respective Securities described in Schedule A
hereto.

 

2.2          Deliveries.

 

(a)           On
or prior to the Closing Date, Purchaser shall deliver or cause to be delivered to Stockholders the following:

 

(i)       this
Agreement duly executed by the Purchaser; and

 

(ii)       the
Subscription Amount to Stockholders described on Schedule A hereto by wire in immediately available funds to the following
bank account. Each Stockholder agrees to have his/her Subscription Amount to be wired to the following bank account.

 

Account Name:________________

 

Bank Name:________________

 

ABA No:__________________

 

Account No.
_______________

 

(b)          On
or prior to the Closing Date, each Stockholder shall deliver or cause to be delivered to the Purchaser the following:

 

(i)       this
Agreement duly executed by such Stockholder;

 

(ii)      such
Stockholder shall have provided the Purchaser with such Stockholder’s wire instructions; and

 

(iii)     the
stock certificate evidencing such Stockholder’s Securities, or in the case of Securities held by a broker, a copy of the
irrevocable instructions to the broker of such Stockholder instructing the broker to deliver on an expedited basis via The Depository
Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) the Securities listed opposite such Stockholder’s
name on Schedule A, registered in the name of the Purchaser.

 

    	 	4	 

    

    

 

2.3          Closing
Conditions.

 

(a)           The
obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)       the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Stockholders contained
herein (unless made as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)      all
obligations, covenants and agreements of each Stockholder required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii)     the
delivery by each Stockholder of the items set forth in Section 2.2(b) of this Agreement;

 

(iv)     there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)       from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of the Purchaser, makes it impracticable or inadvisable to purchase the Securities at the
Closing.

 

(b)           The
respective obligations of the Stockholders hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)       the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchaser contained herein
(unless made as of a specific date stated therein in which case they shall be accurate as of such date);

 

    	 	5	 

    

    

 

(ii)       all
obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii)       the
delivery by the Purchaser of the items set forth in Section 2.2(a) of this Agreement.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1          Representations
and Warranties of the Stockholders. The Stockholders, severally and not jointly, hereby make the following representations
and warranties to the Purchaser:

 

(a)           Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports. The Company owns, directly or indirectly,
all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities. All contractual arrangements with the Subsidiaries are valid and in full force
and effect.

 

(b)           Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect
on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

    	 	6	 

    

    

 

(c)           Authorization;
Enforcement. Such Stockholder is an individual or has the requisite power and authority, corporate or otherwise, to enter into
and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to
carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction
Documents by such Stockholder and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized
by all necessary action on the part of the Stockholder and no further action is required by the Stockholder. This Agreement and
each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by such Stockholder
and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of such Stockholder
enforceable against such Stockholder in accordance with its terms, except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)           No
Conflicts. The execution, delivery and performance by such Stockholder of this Agreement and the other Transaction Documents
to which it is a party, the issuance and sale of the Securities owned by such Stockholder and the consummation by it of the transactions
contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Stockholder’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, as applicable, or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Stockholder, or give to others any rights of termination, amendment, anti-dilution
or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument or other understanding to which the Stockholder is a party or by which any property or asset
of the Stockholder is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Stockholder is subject (including federal
and state securities laws and regulations), or by which any property or asset of the Stockholder is bound or affected; except in
the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)           Ownership.
Each of the Stockholders (i) has good and valid title to and beneficial ownership of the Securities set forth opposite such Stockholder’s
name on Schedule A free and clear of all liens, pledges, security interests and encumbrances, (ii) has not granted any option,
warrant or other right in or to any of the Securities, and (iii) is not a party to any voting trust, voting agreement or shareholder
agreement with respect to the Securities.

 

(f)            Filings,
Consents and Approvals. Such Stockholder is not required to obtain any consent, waiver, authorization or order of, give any
notice to, or make any filing or registration with, any Governmental Authority or any court or other federal, state, local or other
governmental authority or other Person in connection with the execution, delivery and performance by the Stockholder of the Transaction
Documents or the offer, issue and sale of the Securities.

 

    	 	7	 

    

    

 

(g)           Issuance
of the Securities. The Securities were duly and validly issued, fully paid and nonassessable, and are free and clear of all
Liens.

 

(h)           Capitalization.
The capitalization of the Company is set forth in the SEC Reports. The Company has not issued any capital stock since its most
recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the
Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee
stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the
most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Other than employee
stock options, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any
Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts,
commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares
of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary.

 

(i)            SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein being collectively
referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of
filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC
Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and
none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time
of filing. Such financial statements fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

    	 	8	 

    

    

 

(j)            Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as set forth in the SEC Reports filed prior to the date hereof, (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect, and (ii) the Company has
not incurred any liabilities (contingent or otherwise) other than in the ordinary course of business consistent with past practice.

 

(k)           Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Stockholder,
threatened against or affecting the Stockholder, the Company, any Subsidiary or any of their respective properties before or by
any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability
of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably
be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Stockholder, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company. To the knowledge
of the Stockholder, the Commission has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(l)            Labor
Relations. No labor dispute exists or, to the knowledge of the Stockholder, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good.

 

(m)          Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority and the principal Trading Market, including without limitation all foreign, federal, state and local
laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and
labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

    	 	9	 

    

    

 

(n)           Environmental
Laws.The Company and its Subsidiaries (i) are in compliance with all applicable federal, state, local and foreign laws
relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land
surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into
the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder
(“Environmental Laws”); (ii) have received all permits licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such
permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

(o)           Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(p)           Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens
for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP
and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by
the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the
Subsidiaries are in compliance.

 

    	 	10	 

    

    

 

(q)           Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports
and which the failure to so have could not reasonably be expected to have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the
Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the
latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably
be expected to not have a Material Adverse Effect. To the knowledge of the Stockholder, all such Intellectual Property Rights are
enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and
its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual
properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. The Stockholder has no actual knowledge of any facts that would preclude it from having valid license rights or
clear title to the Intellectual Property Rights.

 

(r)            Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. The Stockholder
does not have any reason to believe that the Company and the Subsidiaries will not be able to renew its existing insurance coverage
as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
without a significant increase in cost.

 

(s)           Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Stockholder, none of the employees of the Company or any Subsidiary is presently a
party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Stockholder, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan
of the Company.

 

    	 	11	 

    

    

 

(t)            Sarbanes-Oxley;
Internal Accounting Controls. Except as set forth in the SEC Reports, the Company and the Subsidiaries are in compliance with
any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all
applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the
Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable
assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures
to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The
Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and
the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date,
the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is
reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(u)           Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Stockholder to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by the Transaction Documents. The Purchaser shall have no obligation with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions
contemplated by the Transaction Documents.

 

(v)           Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended.

 

    	 	12	 

    

    

 

(w)          Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to the knowledge of the Stockholder is likely to have the effect of, terminating
the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is
contemplating terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from
any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will
not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock
is currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation
and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation)
in connection with such electronic transfer.

 

(x)           Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due
on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of
all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid
taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the Stockholder knows of no basis
for any such claim.

 

3.2          Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date
to the Stockholders as follows (unless as made of a specific date stated therein, in which case they shall be accurate as of such
date):

 

(a)           Organization;
Authority. The execution and delivery of the Transaction Documents and performance by the Purchaser of the transactions contemplated
by the Transaction Documents have been duly authorized by all necessary action on the part of the Purchaser. Each Transaction Document
to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms
hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its
terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(b)           Understandings
or Arrangements. Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and
warranty not limiting the Purchaser’s right to sell the Securities in compliance with applicable federal and state securities
laws).

 

    	 	13	 

    

    

 

(c)           Experience
of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(d)           Access
to Information. The Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all
exhibits and schedules thereto) and the SEC Reports. 

 

(e)           Regulation
S. Purchaser is a non-U.S. person (as such term is defined in Rule 902 of Regulation S under the Securities Act) and is not
acquiring the Securities for the account or benefit of a U.S. person. Purchaser will not, within six (6) months of the date of
the transfer of the Securities to Purchaser, (i) make any offers or sales of the Securities in the United States or to, or for
the benefit of, a U.S. person (in each case, as defined in Regulation S) other than in accordance with Regulation S or another
exemption from the registration requirements of the Securities Act, or (ii) engage in hedging transactions with regard to the Securities
unless in compliance with the Securities Act. Neither the Purchaser nor any of the Purchaser’s Affiliates or any person acting
on its or their behalf has engaged or will engage in directed selling efforts (within the meaning of Regulation S) with respect
to the Securities, and all such persons have complied and will comply with the offering restriction requirements of Regulation
S in connection with the offering of the Securities outside of the United States.

 

The Stockholders acknowledge
and agree that the representations contained in this Section 3.2 shall not modify, amend or affect the Purchaser’s right
to rely on the Stockholders’ representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transactions contemplated hereby.

 

ARTICLE IV.

MISCELLANEOUS

 

4.1           Termination. 
This Agreement may be terminated by the Purchaser by written notice to the other parties if the Closing has not been consummated
on or before July 31, 2018; provided, however, that no such termination will affect the right of any party to sue
for any breach by any other party (or parties).

 

4.2           Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement.

 

    	 	14	 

    

    

 

4.3           Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

4.4           Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth
on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be as set forth on the signature pages attached hereto.

 

4.5           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Purchaser and Stockholders who hold or sold, as the case may be, at least 50.1% in interest
of the Securities hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision is
sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Stockholder (or group
of Stockholders), the consent of such disproportionately impacted Stockholder (or group of Stockholders) shall also be required.
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.
Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Stockholder
relative to the comparable rights and obligations of the other Stockholders shall require the prior written consent of such adversely
affected Stockholder. Any amendment effected in accordance with this Section 4.5 shall be binding upon each Stockholder and the
Purchaser.

 

4.6           Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

4.7           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. This Agreement or any rights or obligations hereunder may not be assigned by a party to this Agreement without the prior
written consent of the other parties hereto.

 

    	 	15	 

    

    

 

4.8           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

4.9           Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action
or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action
or Proceeding to enforce any provisions of the Transaction Documents, then the substantially prevailing party in such Action or
Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such Action or Proceeding.

 

4.10         Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

4.11         Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

    	 	16	 

    

    

 

4.12         Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

4.13         Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Stockholders and the Purchaser will be entitled to specific performance under the Transaction Documents. The parties agree
that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in
the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

4.14         Saturdays,
Sundays, Holidays, etc.If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

4.15         Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

4.16         WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE
PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

 

(Signature Pages Follow)

 

    	 	17	 

    

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

PURCHASER:

 

	
        Redstone YYL Management Limited

         
	
        Address for Notice:

        Room 5202, The Center,

        99 Queen’s road Central, Hong Kong

	/s/ Yang Yu	 	 
	 	 	E-Mail:

	 	 	Fax:

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 	18	 

    

    

 

[STOCKHOLDER SIGNATURE PAGES TO SECURITIES
PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

 

Name of Stockholder: ________________________________________________________

 

Signature of Stockholder: _________________________________

 

Email Address of Stockholder:_________________________________________

 

Facsimile Number of Stockholder: __________________________________________

 

Address for Notice to Stockholder:

 

 

[SIGNATURE PAGES CONTINUE]

 

    	 	19	 

    

    

 

SCHEDULE A

 

 

	Name	 	Ordinary

Shares	 	 	American

Depository

Shares	 	 	Subscription

Amount	 
	Zhuoyu (“Richard”) Li	 	 	603,811.6	 	 	 	68,864	 	 	 	US$1,417,411.84	 
	Li Wu	 	 	6,300.7	 	 	 	4,375.4	 	 	 	US$22,496.36	 
	Peng Zhang	 	 	875	 	 	 	2,625.3	 	 	 	US$7,375.73	 
	Lili Dong	 	 	1,000	 	 	 	-	 	 	 	US$2,107.17	 
	Hu Gao	 	 	125,432	 	 	 	-	 	 	 	US$264,306.55	 
	Xuetao Chen	 	 	88,398	 	 	 	-	 	 	 	US$186,269.61	 
	Total:	 	 	825,817.30	 	 	 	75,864.70	 	 	 	US$1,899,967.26	 

 

 

20

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