Charter of the Audit Committee of Acorn International, Inc. 1. Audit Committee Purpose. 1.1 Purpose. The purpose of the Audit Committee (the “Committee”) of the Board of Directors (the “Board”) of Acorn International, Inc. (together with its subsidiaries and consolidated affiliated entities, the “Company”) is to assist the Board in overseeing the accounting and financial reporting processes of the Company and audits of the financial statements of the Company. Among the matters the Committee will oversee are (a) the integrity of the Company’s financial statements, (b) the Company’s compliance with legal and regulatory requirements, (c) the independent auditor’s qualifications and independence, (d) the performance of the Company’s internal audit function and independent auditor and (e) the appointment of the Company’s independent auditor and the approval of audit and non-audit services performed by such auditor. 1.2 Limitations on Duties. While the Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Committee to plan or conduct audits or to determine that the Company’s financial statements and disclosures are complete and accurate and are in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations. These are the responsibilities of management and the independent auditor. 2. Audit Committee Composition. 2.1 Membership. The Committee will ...