Document:

Exhibit 10.1 

 

KINGOLD JEWELRY, INC.

 

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION
AGREEMENT (this “Subscription Agreement”) is dated as of January 10, 2013, by and between Kingold Jewelry,
Inc., a Delaware corporation (the “Company”), and the subscribers named on the signature pages and on Schedule
A hereto (each, a “Subscriber” and collectively, the “Subscribers”).

 

BACKGROUND

 

WHEREAS, subject
to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the U.S. Securities
Act of 1933, as amended (the “Act”), the Company desires to issue and sell to each Subscriber, and each Subscriber,
severally and not jointly, desires to purchase from the Company shares of the common stock par value $0.001 per share of the Company
(“Common Stock”), and the Company desires to grant to each Subscriber a warrant to purchase additional shares
of Common Stock, each 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 Company and each Subscriber agree as follows:

 

1.          Share
Purchase and Warrant Grant. Upon the terms and subject to the conditions set forth herein:

 

1.1          The
Company agrees to sell, and the Subcribers, severally and not jointly, agree to purchase, an aggregate of Seven Million (7,000,000)
shares of Common Stock (the “Firm Shares”) for an aggregate purchase price of Twelve Million Six Hundred Thousand
U.S. Dollars ($12,600,000), or $1.80 per Firm Share. Each Subscriber shall deliver as instructed by the Company, via wire transfer,
immediately available funds equal to such Subscriber’s Subscription Amount as set forth on the Schedule A and the
Company shall deliver to each Subscriber its respective Firm Shares.

 

1.2          The
Company agrees to grant to the Subscribers warrants (the “Warrants”) to purchase up to an aggregate Two Million
Eight Hundred Thousand (2,800,000) additional shares of Common Stock from the Company (the “Warrant Shares”)
at a purchase price per Warrant Share equal to the price per Firm Share set forth in Section 1.1 hereof, with each Subscriber
receiving warrants to purchase that number of Warrant Shares pro rata to its purchase of Firm Shares as set forth on the signature
page and on Schedule A hereto, in the form attached as Schedule B hereto. The Firm Shares and the Warrant Shares
are hereinafter referred to together as the “Shares”.

 

2.          Subscriber’s
Representations and Warranties. The Subscriber hereby represents, warrants and/or acknowledges to the Company that:

 

2.1           Such
Subscriber, if an entity, is an entity duly incorporated or formed, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power
and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and performance by such Subscriber of the transactions contemplated
by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action,
as applicable, if any, on the part of such Subscriber and this Agreement has been duly executed by such Subscriber, and when delivered
by such Subscriber in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Subscriber,
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
and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

    	 

    	 

    

 

2.2           The
Subscriber is acquiring the Shares and the Warrants for which it hereby subscribes as a principal for its own investment
account, and not with a view to the resale or distribution of all or any part thereof.

 

2.3           The
Subscriber is not a “distributor” as defined in Regulation S under the Act and is not an officer, director or “affiliate”
(as that term is defined in Rule 405 under the Act) of the Company or an “underwriter” or “dealer” (as
such terms are defined in the federal securities laws of the United States).

 

2.4           The
Subscriber does not have a short position in, or other hedged position with respect to, the Shares, the Warrants or any
other shares of the Common Stock. The Subscriber’s trading activities with respect to the Shares and the Warrants shall
be in compliance with all applicable federal and state securities laws.

 

2.5           The
Subscriber acknowledges it is aware of and agrees to comply with the Securities Exchange Act of 1934, as amended, including Section
13 thereunder, pertaining to its holding of the Shares and the Warrants.

 

3.          Survival.
The foregoing representations are true and accurate as of the date hereof, shall be true and accurate as of the date of the
closing of the sale of the Shares and the Warrants (the “Closing”) and shall survive such Closing. If, in
any respect, such representations shall not be true and accurate prior to or upon the Closing of this offering, the
Subscriber shall give written notice of such fact to the Company, specifying which representations are not true and accurate
and the reasons therefor.

 

4.          Indemnification.
The Subscriber agrees to indemnify and hold harmless the Company and its affiliates, and each of the officers, directors,
partners and shareholders of each, from and against any loss, damage or liability due to or arising out of: (i) a breach of
any of the foregoing representations made by the Subscriber herein; (ii) any and all claims, actions or matters having to do
with the lack of registration of the Shares or the Warrants; (iii) any and all claims or actions that are related to or caused by the
Subscriber’s failure to fulfill any of the terms and conditions of this Subscription Agreement or by reason of
Subscriber’s breach of any of the representations, warranties and covenants of Subscriber contained herein; and (iv)
any and all claims or actions that arise out of or are based upon the Subscriber providing material misstatements of facts,
misleading or false information to the Company, or failing to disclose material facts in this Subscription Agreement or
otherwise in connection with the issuance of the Shares and the Warrants.

 

5.           Lock-Up.  In the event of an underwritten public offering by the Company of its equity securities pursuant to an effective
registration statement filed under the Act, if such Subscriber is the beneficial owner of 5% or more of the Company’s equity
securities at such time, such Subscriber agrees that it will enter into customary “lock-up” agreements in favor of
the underwriters pursuant to which it will agree that it will not offer, pledge, sell, contract to sell, encumber, lend, grant
any option for the sale of or otherwise transfer or dispose of any equity securities of the Company without the prior written
consent of the Company or its underwriters, for such period of time from and after the effective date of such registration statement
as may be requested by the Company or such underwriters.

 

6.          Notice.
All notices or other communications given or made under this Subscription Agreement shall be in writing and shall be (a) personally
delivered, or (b) sent by certified mail, return receipt requested, postage prepaid or by reputable overnight courier providing
a receipt against delivery. Such notices or other communications shall be delivered or sent to the Subscriber at its address set
forth on the signature page hereof, and to the Company at Kingold Jewelry, Inc., 15 Huangpu Science and Technology Park, Jiang’an
District, Wuhan, Hubei Province, PRC 430023, Attention: Zhihong Jia, CEO, with a copy (which shall not constitute notice)
to: Reed Smith LLP, 599 Lexington Avenue, New York, New York 10022, Attention: Yvan Claude J. Pierre, Esq., facsimile: (212)
521-5450, e-mail: ypierre@reedsmith.com, or in either case to such other address as either party may from time to time duly specify
by notice given to the other party in the manner specified above.

 

    	-2-

    	 

    

 

7.          Assignment.
This subscription is not transferable or assignable by the Subscriber.

 

8.          Binding
Effect. This subscription, upon acceptance by the Company, shall be binding upon the heirs, executors, administrators, successors
and assigns of the Subscriber.

 

9.          Governing
Law; Waiver of Jury Trial. THIS SUBSCRIPTION AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF DELAWARE, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES. 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, AND HEREBY IRREVOCABLY
WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION
OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION
OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED
IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF TO SUCH PARTY AT THE ADDRESS FOR SUCH NOTICES TO IT UNDER SUBSCRIPTION
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 MANNER PERMITTED BY LAW. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS SUBSCRIPTION AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

10.          Severability.
In the event that any provision of this Subscription Agreement is invalid or unenforceable under any applicable statute or rule
of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified
to conform to such statute or rule of law. Any provision hereof that may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision hereof.

 

11.         Entire
Agreement. This Subscription Agreement constitutes the entire understanding among the parties with respect to the subject matter
hereof, and supersedes any prior understanding and/or written or oral agreements among them. This Subscription Agreement may not
be changed or modified, except by an agreement in writing signed by each of the parties hereto.

 

    	-3-

    	 

    

 

12.         Counterparts.
This Subscription Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of
which together shall be deemed to be one and the same instrument.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    	-4-

    	 

    

 

KINGOLD JEWELRY, INC.

 

SUBSCRIPTION AGREEMENT

SIGNATURE PAGE

 

The Subscriber hereby
subscribes for the Common Stock set forth below issued by Kingold Jewelry, Inc., a corporation organized under the laws of the
State of Delaware.

 

1.          Dated:
January 10, 2013

 

2.          Five
Hundred Thousand (500,000) shares of Common Stock

 

	SUBSCRIBER:	 	 
	 	 	 
	Ms. Wang, Jianhua	 	[Please print or type all Subscriber information]
	 	 	 
	By: /s/ Wang Jianhua	 	
	Name: Wang Jianhua	 	Taxpayer Identification Number:

 

Address

 

	 	 
	Number and Street	 
	 	 
	 	 
	City State Zip Code	 

 

Subscription for Shares accepted as of

 

	 	January 10, 2013
	 	 
	 	KINGOLD JEWELRY,
	 	INC.
	 	 
	 	By:	/s/ Zhihong Jia	 
	 	Zhihong Jia, CEO

 

    	-5-

    	 

    

 

KINGOLD JEWELRY, INC.

 

SUBSCRIPTION AGREEMENT

SIGNATURE PAGE

 

The Subscriber hereby
subscribes for the Common Stock set forth below issued by Kingold Jewelry, Inc., a corporation organized under the laws of the
State of Delaware.

 

1.          Dated:
January 10, 2013

 

2.          Three
Million Five Hundred Thousand (3,500,000) shares of Common Stock

 

SUBSCRIBER:

 

	Mr. Ng, Shik Yau	 	[Please print or type all Subscriber information]
	 	 	 
	By: /s/  Ng Shik Yau	 	 
	Name:  Ng Shik Yau	 	Taxpayer Identification Number:

 

Address

 

	 	 
	Number and Street	 
	 	 
	 	 
	City State Zip Code	 

 

Subscription for Shares accepted as of

 

	 	January 10, 2013
	 	 
	 	KINGOLD JEWELRY,
	 	INC.
	 	 
	 	By:	/s/ Zhihong Jia	 
	 	Zhihong Jia, CEO

 

    	-6-

    	 

    

 

KINGOLD JEWELRY, INC.

 

SUBSCRIPTION AGREEMENT

SIGNATURE PAGE

 

The Subscriber hereby
subscribes for the Common Stock set forth below issued by Kingold Jewelry, Inc., a corporation organized under the laws of the
State of Delaware.

 

1.          Dated:
January 10, 2013

 

2.          Three
Million (3,000,000) shares of Common Stock

 

SUBSCRIBER:

 

	Mr. Yan, Fei	 	[Please print or type all Subscriber information]
	 	 	 
	By: /s/  Yan Fei	 	 
	Name:  Yan Fei	 	Taxpayer Identification Number:

 

Address

 

	 	 
	Number and Street	 
	 	 
	 	 
	City State Zip Code	 

 

Subscription for Shares accepted as of

 

	 	January 10, 2013
	 	 
	 	KINGOLD JEWELRY,
	 	INC.
	 	 
	 	By:	/s/ Zhihong Jia	 
	 	Zhihong Jia, CEO

 

    	-7-

    	 

    

 

Schedule A

 

    	-8-

    	 

    

 

Schedule B

 

    	-9-Exhibit 10.2

 

KINGOLD JEWLERY, INC.

 

FORM OF STOCK PURCHASE WARRANT

 

	Date of Issuance:  January 10, 2013	Certificate No.

 

FOR VALUE RECEIVED,
Kingold Jewelry, Inc., a corporation organized and existing under the laws of the State of Delaware (the “Company”),
hereby grants to ___________ or its registered assigns (the “Holder”) the right to purchase from the Company,
______________ shares of the Company’s Common Stock (the “Warrant Shares”) at a price per share equal
to the Exercise Price (as adjusted from time to time in accordance herewith). Certain capitalized terms used herein are defined
in Section 5 hereof. The amount and kind of securities obtainable pursuant to the rights granted hereunder and the purchase
price for such securities are subject to adjustment pursuant to the provisions contained in this Warrant.

 

1.
Exercise of Warrant.

 

1.1 Exercise
Period. The Holder may exercise, in whole or in part the purchase rights represented by this Warrant at any time and from
time to time after January 10, 2013 to and including January 9, 2014 (the “Exercise Period”).

 

1.2 Exercise.

 

(a)
The Warrant may be exercised in full by the Holder hereof by delivery of an original or facsimile copy of the form of subscription
attached as Exhibit A hereto (the “Subscription Form”) duly executed by such Holder and surrender of
the original Warrant to the Company at its principal office and upon payment of the Exercise Price by wire transfer of immediately
available funds.

 

(b)
This Warrant shall be deemed to have been exercised and such certificate or certificates representing the Warrant Shares
to be issued in connection with such exercise shall be deemed to have been issued, and the Holder or any other person so designated
to be named therein shall be deemed to have become the Holder of record of such Warrant Shares for all purposes, as of the date
the Warrant has been exercised in accordance with the terms hereof, notwithstanding that the stock transfer books of the Company
shall then be closed or that certificates representing such Warrant Shares shall not then be physically delivered to the Holder.
No deduction shall be made from the amount paid by the Holder for any commissions, discounts or other expenses incurred by the
Company for any underwriting of the issue or otherwise in connection therewith

 

(c)
The Company shall pay all documentary stamp taxes attributable to the issuance of Warrant Shares underlying this Warrant
upon the exercise as provided herein; provided, however, that the Company shall not be required to pay any tax that may be payable
in respect of any transfer involved in the registration of any certificate for Warrant Shares underlying this Warrant in a name
other that of the Holder. The Holder is responsible for all other tax liability that may arise as a result of holding or transferring
this Warrant or receiving shares of Common Stock underlying this Warrant upon exercise hereof.

 

    	 

    	 	

    
 

1.3 Partial
Exercise. The Warrant may be exercised in part (but not for a fractional share) by surrender of this Warrant in the manner
and at the place provided in subsection 1.2 except that the amount payable by the Holder on such partial exercise shall be the
amount obtained by multiplying (a) the number of whole Warrant Shares designated by the Holder in the Subscription Form by (b)
the Exercise Price then in effect. On any such partial exercise, the Company, at its expense, will forthwith issue and deliver
to or on the order of the Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may request, the whole number of Warrant Shares for which such Warrant
may still be exercised.

 

1.4 Delivery
of Stock Certificates on Exercise. The Company agrees that the Warrant Shares purchased upon exercise of this Warrant shall
be deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which
this Warrant shall have been surrendered and payment made for such shares as provided herein. The Company shall deliver the Warrant
Shares within three (3) Trading Days after exercise of this Warrant (or, in the event that payment and the surrendered Warrant
is received after 12:00 Noon, New York City time, within four (4) Trading Days). If the Holder fails to receive a certificate
or certificates representing the Warrant Shares pursuant to this Section 1.4 within the time period required above, then the Holder
will have the right to rescind such exercise.

 

2. Adjustment
of Exercise Price and Number of Warrant Shares. The Exercise Price in effect and the number and kind of securities purchasable
upon the exercise of this Warrant shall be subject to adjustment from time to time upon the happening of certain events as provided
in this Section 2.

 

2.1 Dividends,
Splits, Reclassifications Etc. (a) If after the Issue Date, the Company: (1) pays a dividend or makes a distribution
on its Common Stock in shares of its Common Stock; (2) subdivides its outstanding shares of Common Stock into a greater
number of shares; or (3) combines its outstanding shares of Common Stock into a smaller number of shares; then the
Exercise Price in effect immediately prior to such action shall be adjusted to the number obtained by multiplying the
Exercise Price by a fraction, the numerator which shall be the number of shares of Common Stock outstanding immediately prior
to such action, and the denominator of which shall be the number of shares of Common Stock outstanding immediately following
such action.

 

(b)
If the Company makes any distribution payable in securities or assets of the Company (other than shares of Common Stock),
then and in each such event provision shall be made so that the Holder of this Warrant shall receive upon exercise, in addition
to the number of shares of Common Stock receivable hereupon, the amount of securities or assets of the Company which the Holder
would have received had this Warrant been converted into Common Stock on the date of such event and had the Holder thereafter,
during the period from the date of such event to and including the date of exercise, retained such securities or assets receivable
by them as aforesaid during such period, subject to all other adjustment called for during such period under this Section 2.

 

    	-2-

    	 

    
 

(c)
The adjustment shall become effective immediately after the record date in the case of a dividend or distribution and immediately
after the effective date in the case of a subdivision, combination or reclassification. If after an adjustment, a Holder of a share
of this Warrant upon conversion of such Warrant may receive shares of two or more classes of Capital Stock of the Company, the
Exercise Price will thereafter be subject to adjustment upon the occurrence of an action taken with respect to any such class of
Capital Stock with respect to the Common Stock on terms comparable to those applicable to Common Stock described herein.

 

(d)
No adjustment in the Exercise Price need be made unless the adjustment would require an increase or decrease of at least
$0.01 in the Exercise Price. Any adjustments that are not made shall be carried forward and taken into account in any subsequent
adjustment. All calculations relating to anti-dilution adjustments shall be made to the nearest cent.

 

(e)
No adjustment need be made for a change in the par value or no par value of the Common Stock.

 

(f)
If the Company is a party to a transaction involving a sale of substantially all of the assets of the Company or a merger
or binding share exchange that reclassifies or changes its outstanding Common Stock, the person obligated to deliver securities,
cash or other assets upon conversion of this Warrant will be required to assume the obligations of the Company with respect to
this Warrant. In addition, if the Company in connection with any such transaction makes a distribution to all holders of its Common
Stock of any of its assets, or debt securities or any rights, warrants or options to purchase securities of the Company, then,
from and after the record date for determining the holders of Common Stock entitled to receive the distribution, a holder of a
share of this Warrant that exercises this Warrant would, upon such conversion, be entitled to receive, in addition to the shares
of Common Stock into which such Warrant is exercisable, the kind and amount of securities, cash or other assets comprising the
distribution that such holder would have received if such holder had exercised the Warrant immediately prior to the record date
for determining the holders of Common Stock entitled to receive the distribution.

 

(g)
Whenever the Exercise Price is adjusted in accordance with this Section 2, the Company shall: (1) forthwith compute the
Exercise Price in accordance with this Section 2 and prepare a certificate form an Officer setting forth the Exercise Price, the
method of calculation thereof in reasonable detail, and the facts requiring such adjustment and upon which such adjustment is based;
and (2) as soon as practicable following the occurrence of an event that requires an adjustment to the Exercise Price pursuant
to Section 2 (or if the Company is not aware of such occurrence, as soon as practicable after becoming so aware), provide a written
notice to the holder of the Warrant of the occurrence of such event and a statement setting forth in reasonable detail the method
by which the adjustment to the Exercise Price was determined and setting forth the adjusted Exercise Price.

 

(h)
After an adjustment to the Exercise Price, any subsequent event requiring an adjustment will cause a subsequent adjustment
to the Exercise Price as so adjusted.

 

(i)
In connection with the exercise of this Warrant, no fractions of shares of Common Stock shall be issued, but the Company
shall, with respect to any fractional interest: (i) pay cash with respect to the Market Price of such fractional share; or (ii)
round up to the next whole share of Common Stock.

 

    	-3-

    	 

    
 

3. Certificate
as to Adjustments. In each case of any adjustment or readjustment in the Warrant Shares issuable on the exercise of the Warrants,
the Company will cause an Officer or other appropriate designee to compute such adjustment or readjustment in accordance with
the terms of the Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based, including the number of Warrant Shares to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as provided in this Warrant.

 

4. Reservation
of Stock, etc. Issuable on Exercise of Warrant. The Company will at all times reserve and keep available, solely for issuance
and delivery on the exercise of the Warrants, a sufficient number of shares of Common Stock from time to time issuable on the
exercise of the Warrant.

 

5. Definitions.
As used herein, capitalized terms, in addition to the terms defined elsewhere herein and unless the context otherwise requires,
have the following respective meanings:

 

(a)
“Business Day” means any day except Saturday, Sunday and any day which shall be in New York, New York,
a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close.

 

(b)
“Capital Stock” means (i) with respect to any Person that is a corporation, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock and (ii) with respect to any other Person,
any and all partnership or other equity interests of such Person.

 

(c)
“Commission” shall mean the United States Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act.

 

(d)
“Common Stock” means (i) the Company’s common stock, $0.001 par value per share , and (ii) any
other securities into which or for which any of the securities described in clause (i) may be converted or exchanged pursuant to
a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

 

(e)
“Exercise Price” mean $1.80, as adjusted in accordance with Section 2 hereof.

 

(f)
“Market Price” as of any date (the “Reference Date”) means the price determined by
the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on the NYSE MKT, the New York
Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market, whichever is at the time
the principal trading exchange or market for the Common Stock (a “Principal Market”), the volume weighted average
price of the Common Stock on the Principal Market on which the Common Stock is then listed or quoted for the 10 Trading Days immediately
preceding the Reference Date; (b) if the Common Stock is not then listed or quoted on a Principal Market and if prices for the
Common Stock are then quoted on the Over-The-Counter Bulletin Board, the volume weighted average price of the Common Stock on the
Over-The-Counter Bulletin Board for the 10 Trading Days immediately preceding the Reference Date; (c) if the Common Stock is not
then listed or quoted on the Over-The-Counter Bulletin Board and if prices for the Common Stock are then reported in the “Pink
Sheets” published by Pink Sheets LLC (or a similar organization or agency succeeding to its functions of reporting prices),
the average of the closing bid and ask price per share of the Common Stock so reported for the 10 Trading Days immediately preceding
the Reference Date; or (d) in all other cases, the fair market value of a share of Common Stock as determined by the Company’s
Board of Directors acting reasonably and in good faith and evidenced by a resolution of such Board of Directors.

 

    	-4-

    	 

    
 

(g)
 “Officer” means the Chairman, any Vice Chairman, the Chief Executive Officer, the President, the Chief
Operating Officer, any Vice President, the Chief Financial Officer, the Treasurer, or the Secretary of the Company.

 

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

 

(i)
 “Trading Day” means a day on which the Common Stock traded on the Company’s principal national
securities exchange or quotation system or in the over-the-counter market and was not suspended from trading on any national securities
exchange or quotation system or over-the-counter market at the close of business on such day.

 

6. Assignment;
Exchange of Warrant. Subject to compliance with all applicable securities laws, this Warrant, and all rights hereunder are
assignable or transferable upon the surrender for exchange of this Warrant with endorsement of the holder of this Warrant proposing
to effect the assignment (a “Transferor”) in the form of Exhibit B attached hereto (the “Transferor
Endorsement Form”) and together with an opinion of counsel reasonably satisfactory to the Company that the transfer
of this Warrant will be in compliance with all applicable securities laws. The Company at its expense, but with payment by the
Transferor of any applicable transfer taxes, will issue and deliver to or on the order of the Transferor thereof a new Warrant
or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form
(each, a “Transferee”), calling in the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face or faces of the Warrant so surrendered by the Transferor. No such transfers shall result in a public
distribution of the Warrant.

 

7. Replacement
of Warrant. If this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall issue, in exchange and in substitution
for and upon cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed,
a new Warrant of like tenor, but only upon receipt of evidence of such loss, theft or destruction of such Warrant and indemnity,
if requested, satisfactory to the Company.

 

8. No Shareholder
Rights. This Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company.

 

9. Transfer
on the Company’s Books. Until this Warrant is transferred on the books of the Company, the Company may treat the Holder
hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

    	-5-

    	 

    
 

10. Representations
and Covenants of Holder. The Holder represents and warrants that it is acquiring the Warrant and the Warrant Shares solely
for its account for its own account and not with a view to or for sale or distribution of said Warrant or Warrant Shares or any
part thereof. The Holder also represents that the entire legal and beneficial interests of the Warrant and Warrant Shares the
Holder is acquiring are being acquired for, and will be held for, the Holder’s account only.

 

11. Notices.
All notices, demands, requests, consents, approvals or other communications (collectively, “Notices”) required
or permitted to be given hereunder or which are given with respect to this Warrant shall be in writing and shall be personally
served, delivered by reputable air courier service with charges prepaid, or transmitted by hand delivery, telegram, telex or facsimile,
addressed as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice
shall be deemed given on the date of service or transmission if personally served or transmitted by telegram, telex or facsimile.
Notice otherwise sent as provided herein shall be deemed given on the next Business Day following delivery of such notice to a
reputable air courier service. Notices shall be delivered as follows:

 

	If to the Company: 	Kingold Jewelry, Inc.
 15 Huangpu Science and Technology Park
 Jing’an District, Wuhan, Hubei Province
 PRC 430023
 Attention:  Zhihong Jia, CEO
	 	 
	with a copy to: 	Reed Smith LLP
 599 Lexington Avenue
 New York, New York 10022
 Attention: Yvan-Claude J. Pierre, Esq.
 Fax: (212) 521-5450
 E-mail: ypierre@reedsmith.com
	 	 
	if to the Holder: 	to its most recent address as set forth in the books and records of the Company
	 	 

 

12. Headings
Descriptive. The headings of the several sections and subsections of this Warrant are inserted for convenience only and shall
not in any way affect the meaning or construction of any term of this Warrant.

 

    	-6-

    	 

    
 

13. Governing
Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial. THIS WARRANT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES. EACH OF THE COMPANY AND THE HOLDER
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, AND HEREBY IRREVOCABLY WAIVES, AND
AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY
SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR
PROCEEDING IS IMPROPER. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS
TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF TO SUCH PARTY AT THE ADDRESS FOR SUCH
NOTICES TO IT IN SECTION 11 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 MANNER PERMITTED BY LAW. EACH OF
THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT.

 

14. Miscellaneous.
This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing by the Company
and the Holder. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability
of any other provision.

 

*  *  *  *  *  *

 

    	-7-

    	 

    

 

IN WITNESS WHEREOF, the Company has executed
this Warrant as of the date first written above.

 

 

	 	KINGOLD JEWELRY, INC.
	 	 
	 	 
	 	By: 	 
	 	Name:
Title:	Zhihong Jia
Chief Executive Officer

 

    	Signature
Page to Warrant

    	 	

    

 

Exhibit A

 

FORM OF SUBSCRIPTION

(to be signed only on exercise of Warrant)

 

TO: KINGOLD JEWELRY, INC.

 

(1) Payment. The undersigned, pursuant
to the provisions set forth in the attached Warrant (No. ____), hereby irrevocably elects to purchase _________ shares of
Common Stock of KINGOLD JEWELRY, INC. (the “Company”) covered by such Warrant. Payment shall take the form of
lawful money of the United States.

 

(2) The undersigned requests that the certificates
for said shares of Common Stock be issued in the name of, and delivered to _________________________whose address is________________________________________

 

The undersigned represents and warrants
that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant
to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), or
pursuant to an exemption from registration under the Securities Act.

 

Dated: _________________________

	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	(Signature must conform to name of holder as specified
on the face of the warrant)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	(address)
	 	 	 

 

    	 

    	 	

    

 

Exhibit B

 

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

 

For value received,
the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees”
the right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of KINGOLD JEWELRY,
INC. to which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on
the books of KINGOLD JEWELRY, INC. with full power of substitution in the premises.

 

	Transferees	Percentage Transferred	Number Transferred
	 	 	 
	 	 	 
	 	 	 

 

Dated: ____________, ______

	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	(Signature must conform to name of holder as specified
on the face of the warrant)
	 	 	 
	Signed in the presence of:	 	 
	 	 	 
	 	 	 
	 	 	 
	(Name)	 	 
	 	 	 
	ACCEPTED AND AGREED:

[TRANSFEREE]	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	(address)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	(address)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]