Document:

Exhibit 10.2

 

[English translation from the original
Russian language document]

 

January 14, 2013

 

	To:	Mr. Tcahai Hairullaevich Katcaev
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	To:	VARWOOD HOLDINGS LIMITED
	 	 	 
	 	 	 
	 	 	 
	 	Attention:  Mr. Tcahai Hairullaevich Katcaev

 

Re:           TOT
MONEY LLC, a company organized and existing under the laws of  the Russian Federation (the “Company”
or  “TOT Money”)

 

Dear Mr. Katcaev:

Reference is hereby made to the agreement
that VARWOOD HOLDINGS LIMITED, a company organized and existing under the laws of Belize is the indirect owner of twenty (20) percent
of the Company (the “Minority Owner”). In addition, it is understood that the Minority Owner, through Mr. Tcahai
Hairullaevich Katcaev (“Katcaev”) provides key management and operational services to the Company.

 

For as long as (a) Minority Owner owns,
directly or indirectly, at least twenty (20) percent of the total charter capital of the Company and (ii) Mr. Tcahai Hairullaevich
Katcaev continues to be employed by the Company, the parties hereby agree as follows:

 

1.           The
Company shall make a quarterly payment of 750,000 (seventy five hundred thousand) United States Dollars to Mr. Tcahai Hairullaevich
Katcaev to the extent that TOT Money’s Average Calculated Margin during each quarter of the calendar year 2013 meets the
criteria set forth below:

 

Quarterly TOT Money’s Average Calculated
Margin during a quarter of the calendar years 2013-2014 is at least 11 (eleven) percent.

 

2.           For
purposes of this letter agreement, “TOT Money’s Average Calculated Margin” means, with respect to TOT Money and
its Subsidiaries, for a quarter of the calendar year 2013, margin is defined as the quotient of: (i) in the numerator –
the difference between the sum of money received from the operators/aggregators and payments to partners (data provided by the
billing system), (ii) in the denominator – the sum of money received from the operators/aggregators. In order for the “TOT
Money’s Average Calculated Margin” to be effective, it shall be verified and confirmed by an independent third party
(the “Independent Third Party”). The Independent Third Party means any firm listed on Annex A or any other internationally
recognized accounting firm as unanimously agreed by the participants of the Company, including any Affiliate of such firms.

 

The payment specified in the Paragraph
1 hereof shall be effected within 5 (five) working days upon any of the events specified below occurs (whichever occurs first):

 

(a) confirmation of “TOT Money’s
Average Calculated Margin” by the Independent Third Party;

 

    	 

    	 

    

 

(b) expiration of 90 days after the last
day of the corresponding quarter.

 

3. In the event of (a) any breach or non-performance
of the obligations of Mr. Tcahai Hairullaevich Katcaev under his employment contract with TOT Money or (b) the Minority Owner’s
or any of its Affiliates’ (other than the Company and Subsidiaries of the Company) breach of any of its obligations as Minority
Owner, as unanimously agreed at a later date by and between the Participants of the Company, and, in each case, such breach or
non-performance is not cured within thirty (30) days after notice to Minority Owner, then, in addition to any other remedy at law
or in equity:

 

(i) Minority Owner and its Affiliates (other
than the Company and Subsidiaries of the Company) shall automatically forfeit any and all rights to receive any payments pursuant
to this letter agreement.

 

4. Mr. Tcahai Hairullaevich Katcaev shall
receive a monthly consulting payment equal to thirty (30) percent of TOT Money’s US GAAP earnings before taxes. TOT Money
is responsible for any and all tax payments as required under Russian legislation. For the avoidance of doubt, the monthly consulting
payment referenced herein shall be part of TOT Money’s operational expenses.

 

5. This Agreement and all agreements executed
pursuant hereto shall be in the Russian language. In case of any translation of this Agreement or any provision hereof being prepared
or any dispute arising over the meaning of any provision hereof, the Russian language version shall prevail.

 

6. The Company and its Subsidiaries shall
be permitted to declare and make dividends if, and only if, such dividends are declared and made pro rata to all Участникам
(Shareholders), with all Shareholders receiving the same type and kind of dividend payment, in the same proportion (whether in
cash, securities, assets or other consideration). However, any and all dividends paid to the Minority Owner, shall be reduced by
the sum of all monthly consulting payments made between dividend payments to Mr. Tcahai Hairullaevich Katcaev. .

 

7. This letter agreement, and any claim
hereunder, shall be governed by, and construed in accordance with, the laws of the Russian Federation applicable to contracts executed
in and to be performed in that country and without giving effect to any choice or conflict of law provision or rule (whether of
Belize or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than those of the Russian
Federation.

 

8. This letter agreement constitute the
entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings
pertaining thereto. No party hereto may, without the prior written consent of the other parties hereto, assign, grant any security
interest over, hold on trust or otherwise transfer, in whole or in part, any of its rights and obligations under this letter agreement.
Except as expressly provided for herein, nothing in this letter agreement shall confer any rights upon any Person that is not a
party hereto or the successor or permitted assignee of a party to this letter agreement. This letter agreement may be executed
and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement. Copies of executed counterparts transmitted by telecopy or other electronic transmission
service shall be considered original executed counterparts.

 

[Balance of Page Intentionally Left
Blank]

 

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Please indicate your consent to the terms
of this letter agreement by signing and dating a duplicate copy thereof and returning it to the undersigned.

 

OOO
TOT Money

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

Agreed and accepted January ___, 2013:

 

	 	 
	Mr. Tcahai Hairullaevich Katcaev, individually

 

VARWOOD HOLDINGS LIMITED

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	3

    	 

    

 

ANNEX A

 

		1.	ICLC

		2.	Alinga Consulting and Audit, LLC

		3.	Audit Firm Femida Audit LLC

		4.	AuditProfit LLC

		5.	Benefit Management & Consulting

		6.	CJSC The Independent Consulting Group "2K Audit - Business Consulting"

		7.	Ernst & Young LLC

		8.	'Finances M' close company

		9.	Intercom-Audit

		10.	Interexpertiza LLC

		11.	Nexia Pacioli

		12.	OOO Moore Stephens

		13.	Rosexpertiza LLC

		14.	RSM Top-Audit Limited Liability Company

		15.	UHY Yans-Audit, LLC

		16.	ZAO BDO

		17.	ZAO KPMG

		18.	ZAO PricewaterhouseCoopers Audit

		19.	ZAO Deloitte & Touche

 

OOO
TOT Money

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

Agreed and accepted January ___, 2013:

 

	 	 
	Mr. Tcahai Hairullaevich Katcaev, individually

 

VARWOOD HOLDINGS LIMITED

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	4Exhibit 10.3

 

[English translation from the original
Russian language document]

 

July 1, 2013

To: Mr. Tsakhai Khairullaevitch Katsaev

 

Re:       TOT MONEY LLC, a company organized
and existing under the laws of the Russian Federation (the “Company” or “TOT Money”)

 

Dear Tsakhai
Khairullaevitch,

 

You are kindly requested to confirm the
following:

 

1. Ts.Kh.
Katsaev shall guarantee that “Average Calculated Margin of 'TOT Money' ” of each
month of the calendar year 2013 shall be not less than 11 (eleven) percent starting from July 1, 2013.

 

2. For the purposes of this document, “Average
Calculated Margin of 'TOT Money'” shall mean with respect to “TOT Money” for each month of the calendar year
2013:

 

(i)
in the numerator the difference between the sum of statements of operators/aggregators and the amount of payments to partners
(traffic providers), calculated in accordance with data of billing system (a software and hardware complex which is under control
of Ts.Kh. Katsaev and being used by TOT MONEY LLC and by Ts.Kh. Katsaev for determining the volume and the value of traffic, including
the amount of monetary funds to be paid to partners) and in the denominator –

 

(ii) the sum
of money confirmed by the statements of mobile phone operators/aggregators for the same period
(one month).

 

In order for the Average Calculated Margin
of “TOT Money” to be effective, it must be verified and confirmed by an independent third party (the “Independent
Third Party”). The Independent Third Party means any firm listed on Annex A or any other internationally recognized accounting
firm as unanimously agreed by the participants of the Company, including any Affiliate of such firms.

 

3. Average Calculated Margin of “TOT Money” shall
include the following expenses (hereinafter referred to as the "Expenses of TOT MONEY LLC":

 

(i) No more than 3% (being calculated similarly to Average Calculated
Margin of “TOT Money” calculation) – expenses of TOT MONEY LLC related to payments of remuneration to partners
of TOT MONEY LLC in a manner convenient to them ("transport");

 

(ii) 3.5% (being calculated similarly to Average Calculated
Margin of “TOT Money” calculation) - permanent fixed costs related to operating activities of TOT MONEY LLC (e.g.,
such sum when the traffic is less than 300,000,000 (three hundred million) Russian rubles in each month may not exceed 10,000,000
(ten million) Russian rubles, if the traffic shall increase or decrease you shall provide full transparency of increasing and decreasing
of operating expenses of TOT MONEY LLC. Such expenses include the following costs:

 

    	 

    	 

    

 

1. Mandatory monthly payments to operators for the allocating
and using short service numbers, traffic transmission;

 

2. Services provided by OOO “Craft-Telecom” (SMS
communicating)

 

3. Leasing of head-end-equipment, leasing of disc space (hosting),
technical telephony, leasing of communication links;

 

4. Offset of operator services on operating with short numbers
(customer recurring fees);

 

5. Labor compensation fund (including taxes):

 

6. Leasing of office spaces and workshops;

 

7. Communication services (telephony, internet) for rented premises;

 

8. Other office expenses (postal and express services, back-office/reception
servises, maintenance of office, acquiring and minor repairs of office equipment, computer and household appliance, furniture);

 

9. Software for the office (online documentation for accountants
and lawyers);

 

10. Other services, including call-center and operating of EDO
and electronic document management system;

 

11. Cash and settlements services and services of banks (operating
account services);

 

12.
Obligatory payments to the budget (taxes and charges);

 

13. Other expenses starting from July 2013 in this column not
more than 1,500,000 Russian rubles all changes upward shall require the consent of participants of TOT MONEY LLC.

 

14. External consultants services in respect of highly specialized
matters directly related to the economic activity of the company (licensing, translation services, etc.);

 

15.
Services provided by involved companies (PSS Solution -
Latvia, OOO "SDSP-Grupp" - Petrozavodsk, Russia);

 

16. Interest on loans from banks and third parties, including
payments arising from the factoring agreement with OAO "Alfa-Bank".

 

4. The difference between Average Calculated Margin of «TOT
Money» and the Expenses of TOT MONEY LLC shall be allocated as follows:

 

__________________________

 

	_____________ Ц.Х. Кацаев / Ts.Kh. Katsaev	 	____________ С.В. Хабаров / S.V. Khabarov
	_____________ О.П. Фирер / O.P. Firer	 	____________ К.Л. Зарипов / K.L. Zaripov

 

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Any and all payments of the Remuneration
of Ts.Kh. Katsaev shall be subject to the limitations set forth in Paragraph 5 of this letter agreement.

 

After recovering of positive finance
indexation of the Сompany in accordance with Paragraph 5 of this letter agreement, the participants of TOT MONEY
LLC shall have the right to receive their share specified in this Paragraph 4 at any time during the applicable month
and in the end of such month can provide final result of the settlements specified in this letter agreement.

 

5. The Parties acknowledge that as of June
30, 2013 the loss of TOT MONEY LLC economic activity is equal to 124,654,736 (one hundred twenty-four million six hundred fifty-four
thousand seven hundred thirty six) Russian rubles, including:

 

- 87,000,000 Russian rubles - payments
made with the consent of TOT MONEY LLC participants to persons that had previously controlled the business of TOT MONEY LLC;

 

- 22,000,000 Russian rubles – material
losses resulted from acts of operators with respect to TOT MONEY LLC;

 

- 15,654,736 Russian rubles – payments
not made by TOT MONEY LLC in favor of NETE LLC according to debt obligations incurred previously.

 

6. For the purposes of providing a possibility
to continue TOT MONEY LLC operations, the Parties shall establish the period necessary for recovering the abovementioned loss in
the amount of 124,654,736 (one hundred twenty-four million six hundred fifty-four thousand seven hundred thirty six) Russian
rubles (the period necessary for recovering positive financial results of TOT MONEY LLC), hereinafter referred to as the "Period."

 

The term of the Period is from July 1,
2013 until the recovery in full of the abovementioned loss in the amount of 124,654,736 (one hundred twenty-four million six
hundred fifty-four thousand seven hundred thirty-six) Russian rubles, that is achievement of positive financial results of
TOT MONEY LLC. During this Period, Ts.Kh. Katsaev agrees to forfeit any monetary funds which would have been paid to him according
to the letter agreement of January 14, 2013 signed by Ts.Kh. Katsaev, including a part specified in Paragraph 4 of this letter
agreement. During this Period, Ts.Kh. Katsaev shall be obligated to transfer to the Company all monetary funds which should be
paid to him under this letter agreement. However from the end of Period, Ts.Kh. Katsaev will be eligible to receive monetary funds
which should be paid to him under the letter agreement of January 14, 2013 signed by Ts.Kh. Katsaev, including the amounts specified
in Paragraph 4 of this letter agreement.

 

7. An obligation to pay a fine imposed
by mobile phone operators on TOT MONEY LLC shall be transferred to a content-provider (a partner) who caused such fines.

 

_________________________

 

	_____________ Ц.Х. Кацаев / Ts.Kh. Katsaev	 	____________ С.В. Хабаров / S.V. Khabarov
	_____________ О.П. Фирер / O.P. Firer	 	____________ К.Л. Зарипов / K.L. Zaripov

 

    	3

    	 

    

 

In the event of impossibility of paying
the fine by the content-provider (partner) who caused such fines, the obligation to pay the fine shall be imposed on all content-providers
(partners) of TOT MONEY LLC. For this purpose, the amount of the fine shall be divided among all content-provider (partners) proportionally
to their respective ratios in TOT MONEY LLC's turnover.

 

8. In the event that a fine is imposed
by mobile phone operators on TOT MONEY LLC on the grounds that do not correspond to technical facts, the burden of proving the
unlawfulness of the fine shall be on Ts.Kh. Katsaev.

 

If as a result of submitting the conclusive
evidence of a mistake, the fine is not canceled by mobile phone provider, payment of the fine shall be made out of the funds of
TOT MONEY LLC.

 

9. The following agreement previously entered
into with you shall be canceled and shall be null and void ab initio:

 

The Company shall make a quarterly payment
of 750,000 (seventy five hundred thousand) United States Dollars to Mr. Tcahai Hairullaevich Katcaev to the extent that TOT Money’s
Average Calculated Margin during each quarter of the calendar year 2013 meets the criteria set forth below:

 

Quarterly TOT Money’s Average
Calculated Margin during a quarter of the calendar year 2013 is at least 11 (eleven) percent.

 

10. Ts.Kh. Katsaev shall take all necessary
and any possible actions so that all monetary funds transferred to TOT MONEY LLC by Limited liability company “NET ELEMENT
RUSSIA” (NETE LLC) and by other persons related to NETE LLC after this letter-agreement is signed would be immediately returned
and replaced by monetary funds provided to TOT MONEY LLC under factoring agreement.

 

11. Ts.Kh. Katsaev shall take all necessary
and any possible actions so that net income of TOT MONEY LLC would be withdrawn from turnover at the end of each calendar month
if it is not contrary to the interests and purposes of the Company (as determined by the participants of TOT MONEY LLC).

 

12. This letter
agreement (except the list of internationally recognized accounting firms specified in Annex A to this letter agreement)
and all other agreements, executed in accordance with this letter-agreement is performed or shall be performed in Russian language.
In case of translating of this letter-agreement or any of its provisions to another language or in case of dispute arising in respect
of meaning of any provision of this letter agreement, the Russian version shall have precedence.

 

13. This letter agreement and any claims
hereunder shall be governed by and construed in accordance with the laws of the Russian Federation applicable to contracts entered
into in this jurisdiction and performed in it, and also shall not be subject to any regulations or rules regarding the choice of
law or conflict of law that may cause the application of the laws of any jurisdiction other than the laws of the Russian Federation.

 

______________________

 

	_____________ Ц.Х. Кацаев / Ts.Kh. Katsaev	 	____________ С.В. Хабаров / S.V. Khabarov
	_____________ О.П. Фирер / O.P. Firer	 	____________ К.Л. Зарипов / K.L. Zaripov

 

    	4

    	 

    

 

14.
This letter agreement constitutes the entire agreement between the parties of this document by its subject matter and supersedes
all prior agreements and understandings relating thereto, whether oral or written, notwithstanding any other provision of this
letter agreement, to recover the positive financial results of the Company (as set forth Paragraph 6 of this letter agreement),
after which all previous agreements are automatically renewed. None
of the parties hereunder shall, without the prior written consent of the other parties to this letter agreement directly or indirectly
assign, transfer of a security interest holding in trust or otherwise directly or indirectly transfer all or any part of its rights
and obligations under this letter agreement. Except as expressly provided herein, nothing in this letter agreement confers any
rights of any person who is not a party to this letter agreement or the heir or authorized successor in interest of the party to
this letter agreement. This letter agreement may be signed and delivered (including by facsimile transmission) in one or more counterparts,
and by different parties of this document in certain instances, each of them being signed and transmitted to be considered as the
original, but all of them together make up one and the same agreement. Copies of the signed copies sent by facsimile or other electronic
transmission service shall be considered as original signed copies.

 

[The remaining part of page is left
empty intentionally]

 

	_____________ Ц.Х. Кацаев / Ts.Kh. Katsaev	 	____________ С.В. Хабаров / S.V. Khabarov
	_____________ О.П. Фирер / O.P. Firer	 	____________ К.Л. Зарипов / K.L. Zaripov

 

    	5

    	 

    

 

Please express your acceptance of the terms
of this letter agreement by signing and affixing the date on the two copies of this letter agreement and returning one sined and
dated copy of this letter agreement to the undersigned.

 

	On behalf of the participants of TOT MONEY LLC:
	 
	/s/ Konstantin Leonidovitch Zaripov	 
	Konstantin Leonidovitch Zaripov
	 
	On behalf of NETE LLC:
	 
	/s/ Sergey Valerievitch Khabarov	 
	
        General Director of NETE LLC

        Sergey Valerievitch Khabarov

	 
	On behalf of Net Element International, Inc.:
	 
	/s/ Oleg Pavlovitch Firer	 
	
        Chief Executive Officer of Net Element 

        International, Inc. Oleg Pavlovitch Firer

	 
	/s/ Tsakhai Khairullaevitch Katsaev	 
	Tsakhai Khairullaevitch Katsaev
	 
	Accepted and agreed July 2, 2013

 

	_____________ Ц.Х. Кацаев / Ts.Kh. Katsaev	 	____________ С.В. Хабаров / S.V. Khabarov
	_____________ О.П. Фирер / O.P. Firer	 	____________ К.Л. Зарипов / K.L. Zaripov

 

    	6

    	 

    

 

Annex A

 

1. ICLC

2. Alinga Consulting and Audit, LLC

3. Audit Firm Femida Audit LLC

4. AuditProfit LLC

5. Benefit Management & Consulting

6. CJSC The Independent Consulting Group
"2K Audit - Business Consulting"

7. Ernst & Young LLC

8. 'Finances M' close company

9. Intercom-Audit

10. Interexpertiza LLC

11. Nexia Pacioli

12. OOO Moore Stephens

13. Rosexpertiza LLC

14. RSM Top-Audit Limited Liability Company

15. UHY Yans-Audit, LLC

16. ZAO BDO

17. ZAO KPMG

18. ZAO PricewaterhouseCoopers Audit

19. ZAO Deloitte & Touche

 

	On behalf of the participants of TOT MONEY LLC:
	 
	/s/ Konstantin Leonidovitch Zaripov	 
	Konstantin Leonidovitch Zaripov
	 
	On behalf of NETE LLC:
	 
	/s/ Sergey Valerievitch Khabarov	 
	
        General director of NETE LLC

        Sergey Valerievitch Khabarov

	 
	On behalf of Net Element International, Inc.:
	 
	/s/ Oleg Pavlovitch Firer	 
	
        Chief Executive Officer of Net Element 

        International, Inc. Oleg Pavlovitch Firer

	 
	/s/ Tsakhai Khairullaevitch Katsaev	 
	Tsakhai Khairullaevitch Katsaev
	 
	Accepted and agreed July 2, 2013

 

	_____________ Ц.Х. Кацаев / Ts.Kh. Katsaev	 	____________ С.В. Хабаров / S.V. Khabarov
	_____________ О.П. Фирер / O.P. Firer	 	____________ К.Л. Зарипов / K.L. Zaripov

 

    	7

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