Document:

Exhibit 4.1

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of July 5, 2017, by and between NET ELEMENT, INC., a Delaware
corporation (the “Company”), and COBBLESTONE CAPITAL PARTNERS, LLC, a New York limited liability company
(together with its permitted assigns, the “Buyer”). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Common Stock Purchase Agreement by and between the parties hereto, dated
as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”).

 

WHEREAS:

 

A.           Upon
the terms and subject to the conditions of the Purchase Agreement, (i) the Company has agreed to issue to the Buyer, and the
Buyer has agreed to purchase, up to Ten Million Dollars ($10,000,000) of the Company’s common stock, par value $0.0001 per
share (the “Common Stock”), pursuant to Section 1 of the Purchase Agreement (such shares, the “Purchase
Shares”), and (ii) the Company has agreed to issue to the Buyer such number of shares of Common Stock as is required
pursuant to Section 4(e) of the Purchase Agreement (the “Commitment Shares”); and

 

B.           To
induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the
“1933 Act”), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

1.           DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

a.           “Person”
means any person or entity including any corporation, a limited liability company, an association, a partnership, an organization,
a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

b.           “Register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more registration statements of the Company in compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act
or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and the declaration
or ordering of effectiveness of such registration statement(s) by the U.S. Securities and Exchange Commission (the “SEC”).

 

     

     

    

 

c.           “Registrable
Securities” means (i) all of the Commitment Shares and (ii) such number of additional Purchase Shares as reasonably determined
by the Company, which may from time to time be, issued or issuable to the Buyer upon purchases of the Available Amount under the
Purchase Agreement, and any shares of capital stock issued or issuable with respect to the Purchase Shares, the Commitment Shares
or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization, exchange or similar event, without
regard to any limitation on purchases under the Purchase Agreement.

 

d.           “Registration
Statement” means a registration statement of the Company covering only the sale of the Registrable Securities.

 

2.           REGISTRATION.

 

a.           Mandatory
Registration. The Company shall use reasonable commercial efforts to file with the SEC the Registration Statement within Ten
(10) Business Days from the date hereof. The Registration Statement shall register only the Registrable Securities and no other
securities of the Company. The Buyer shall have a reasonable opportunity to review and comment upon such Registration Statement
or any amendment to such Registration Statement and any related prospectus prior to its filing with the SEC. The Buyer shall furnish
all information reasonably requested by the Company for inclusion therein. The Company shall use its reasonable commercial efforts
to have the Registration Statement or any amendment declared effective by the SEC as soon as reasonably practicable. Subject to
Section 3(e), the Company shall use reasonable commercial efforts to keep the Registration Statement effective pursuant to Rule
415 promulgated under the 1933 Act and available for sales of all of the Registrable Securities at all times until the earlier
of (i) the date as of which the Buyer may sell all of the Registrable Securities without restriction pursuant to Rule 144 promulgated
under the 1933 Act (or successor thereto) or (ii) the date on which the Buyer shall have sold all the Registrable Securities and
no Available Amount remains under the Purchase Agreement (the “Registration Period”). The Registration Statement
(including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

 

b.           Rule
424 Prospectus. The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant
to Rule 424 promulgated under the 1933 Act, a prospectus and prospectus supplements, if any, to be used in connection with sales
of the Registrable Securities under the Registration Statement. The Buyer shall have two (2) Business Days to review and comment
upon such prospectus prior to its filing with the SEC. The Buyer shall use its reasonable commercial efforts to comment upon such
prospectus within two (2) Business Days from the date the Buyer receives the final version of such prospectus.

 

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c.           Sufficient
Number of Shares Registered. In the event the number of shares available under the Registration Statement is insufficient to
cover the Registrable Securities, the Company shall, to the extent necessary and permissible, amend the Registration Statement
or file a new registration statement (a “New Registration Statement”), so as to cover all such Registrable Securities
as soon as practicable after the Buyer notifies in writing the Company about the necessity therefor. The Company shall use its
reasonable commercial efforts to have such amendment and/or New Registration Statement become effective as soon as reasonably practicable
following the filing thereof.

 

3.           RELATED
OBLIGATIONS.

 

With respect to the Registration
Statement and whenever any Registrable Securities are to be registered pursuant to Sections 2(a) and (c), including on any New
Registration Statement, the Company shall use its reasonable commercial efforts to effect the registration of the Registrable Securities
in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.           The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration
Statement and the prospectus used in connection with such Registration Statement, as may be necessary to keep the Registration
Statement or any New Registration Statement effective at all times during the Registration Period, subject to Section 3(e)
hereof and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities
of the Company covered by the Registration Statement or any New Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof
as set forth in such Registration Statement. Should the Company file a post-effective amendment to the Registration Statement or
a New Registration Statement, the Company will use its reasonable commercial efforts to have such filing declared effective by
the SEC within sixty (60) consecutive Business Days as of the date of filing,
which such period shall be extended for an additional thirty (30) Business Days if the Company receives a comment letter
from the SEC in connection therewith.

 

b.           The
Company shall submit to the Buyer for review and comment any disclosure in the Registration Statement, any New Registration Statement
and all amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a filed Form 10-K,
Form 10-Q or a Current Report on Form 8-K or any amendment as a result of the Company’s filing of a document that is incorporated
by reference into the Registration Statement or New Registration Statement) containing information provided by the Buyer for inclusion
in such document and any descriptions or disclosure regarding the Buyer, the Purchase Agreement, including the transaction contemplated
thereby, or this Agreement at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form
to which Buyer reasonably and timely objects. Upon request of the Buyer, the Company shall provide to the Buyer all disclosure
in the Registration Statement or any New Registration Statement and all amendments and supplements thereto (other than prospectus
supplements that consist only of a copy of a filed Form 10-K, Form 10-Q or Current Report on Form 8-K or any amendment as a result
of the Company’s filing of a document that is incorporated by reference into the Registration Statement or New Registration
Statement) at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form to which Buyer
reasonably and timely objects. The Buyer shall use its reasonable commercial efforts to comment upon the Registration Statement
or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Buyer
receives the final version thereof.

 

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c.           Upon
request of the Buyer, the Company shall furnish to the Buyer, (i) upon the effectiveness of a Registration Statement, a copy of
the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies
as the Buyer may reasonably request) and (ii) such other documents, including copies of any preliminary or final prospectus, as
the Buyer may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by
the Buyer.

 

d.           The
Company shall use reasonable commercial efforts to (i) register and qualify, unless an exemption from registration and qualification
is available, the Registrable Securities covered by a Registration Statement under such other securities or “blue sky”
laws of such jurisdictions in the United States as the Buyer reasonably requests, (ii) prepare and file in those jurisdictions,
such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify the Buyer who holds
Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or
qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction
in the United States or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

e.           As
promptly as reasonably practicable after becoming aware of such event or facts, the Company shall notify the Buyer in writing if
the Company has determined that the prospectus included in any Registration Statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, and as promptly as reasonably practical (taking into
account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of premature
disclosure of such event or facts) prepare a prospectus supplement or amendment to such Registration Statement to correct such
untrue statement or omission, and, upon the Buyer’s request, deliver a copy of such prospectus supplement or amendment to
the Buyer. In providing this notice to the Buyer, the Company shall not include any other information about the facts underlying
the Company’s determination and shall not in any way communicate any material nonpublic information about the Company or
the Common Stock to the Buyer. The Company shall also promptly notify the Buyer in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become
effective (notification of such effectiveness shall be delivered to the Buyer by facsimile or e-mail on the same day of such effectiveness),
(ii) of any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be
appropriate. In no event shall the delivery of a notice under this Section 3(e), or the resulting unavailability of a Registration
Statement, without regard to its duration, for disposition of securities by Buyer be considered a breach by the Company of its
obligations under this Agreement.

 

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f.             The
Company shall use its reasonable commercial efforts to prevent the issuance of any stop order or other suspension of effectiveness
of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practical time
and to notify the Buyer of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

g.           The
Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same
class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities if the Principal Market
(as such term is defined in the Purchase Agreement) is an automated quotation system. The Company shall pay all fees and expenses
in connection with satisfying its obligation under this Section.

 

h.           The
Company shall cooperate with the Buyer to facilitate the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to any Registration Statement and enable such certificates
to be in such denominations or amounts as the Buyer may reasonably request and registered in such names as the Buyer may request.

 

i.             Within
one (1) Business Day after any Registration Statement is ordered effective by the SEC, the Company shall deliver to the Transfer
Agent for such Registrable Securities (with copies to the Buyer) confirmation that such Registration Statement has been declared
effective by the SEC in the form attached hereto as Exhibit A.

 

j.             The
Company agrees to take all other reasonable actions as necessary and reasonably requested by the Buyer to expedite and facilitate
disposition by the Buyer of Registrable Securities pursuant to any Registration Statement.

 

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4.           OBLIGATIONS
OF THE BUYER.

 

a.           The
Buyer has furnished to the Company in Exhibit B hereto such information regarding itself, the Registrable Securities held
by it and the intended method of disposition of the Registrable Securities held by it as required to effect the registration of
such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably
request. The Company shall notify the Buyer of any other information the Company requires from the Buyer in connection with any
Registration Statement hereunder. The Buyer will as promptly as practicable notify the Company of any material change in the information
set forth in Exhibit B, other than changes in its ownership of the Common Stock.

 

b.           The
Buyer agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing
of any amendments and supplements to any Registration Statement hereunder.

 

c.           The
Buyer agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind
described in Section 3(f) or any notice of the kind described in 3(e), the Buyer will immediately discontinue disposition of Registrable
Securities pursuant to any registration statement(s) covering such Registrable Securities until the Buyer’s receipt (which
may be accomplished through electronic delivery) of the copies of the filed supplemented or amended prospectus contemplated by
Section 3(f) or the first sentence of 3(e). In addition, upon receipt of any notice from the Company of the kind described in the
first sentence of Section 3(e), the Buyer will immediately discontinue purchases or sales of any securities of the Company unless
such purchases or sales are in compliance with applicable U.S. securities laws. Notwithstanding anything to the contrary, the Company
shall cause its Transfer Agent to deliver as promptly as practicable shares of Common Stock without any restrictive legend in accordance
with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which the Buyer
has received a Purchase Notice or VWAP Purchase Notice (both as defined in the Purchase Agreement) prior to the Buyer’s receipt
of a notice from the Company of the happening of any event of the kind described in Section 3(f) or 3(e) and for which the Buyer
has not yet settled.

 

5.           EXPENSES
OF REGISTRATION.

 

All reasonable expenses of
the Company, other than sales or brokerage commissions and fees and disbursements of counsel for the Buyer, incurred in connection
with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing
and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by
the Company.

 

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6.           INDEMNIFICATION.

 

a.           In
connection with the Registration Statement or any New Registration Statement, the Company will indemnify the Buyer, its members,
directors, officers, employees, agents and representatives (each, an “Indemnified Person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, (collectively, “Claims”) reasonably incurred in defending any action, claim, suit, inquiry, proceeding,
investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency
or body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material
fact in the Registration Statement, any New Registration Statement or any post-effective amendment thereto or in any filing made
in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction
in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement
or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files
any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1933 Act or the Securities Exchange
Act of 1934, as amended (the “1934 Act”), any other law, including, without limitation, any state securities
law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration
Statement or any New Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”).
Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (A) shall
not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon or in conformity
with information furnished to the Company by such Indemnified Person; (B) with respect to any superseded prospectus, shall not
inure to the benefit of any such person from whom the person asserting any such Claim purchased the Registrable Securities that
are the subject thereof (or to the benefit of any other Indemnified Person) if the untrue statement or omission of material fact
contained in the superseded prospectus was corrected in the revised prospectus, as then amended or supplemented; (C) shall not
be available to the extent such Claim is based on a failure of the Buyer to deliver, or to cause to be delivered, the prospectus
made available by the Company, if such prospectus was theretofore made available by the Company pursuant to Section 3(c) or Section
3(e); and (D) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of the Company.

 

b.           In
connection with the Registration Statement or any New Registration Statement, the Buyer agrees to indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, its directors, officers, employees,
agents and representatives (collectively, an “Indemnified Party”), against any Claim or Indemnified Damages
to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages
arise out of or are based upon any Violation, in each case to the extent that such Violation occurs in connection with (i) information
about the Buyer, its affiliates, its controlling persons and/or Buyer’s or its affiliates’, designees’ or agents’
plan of distribution of the Registrable Securities, including, without limitation, the information set forth on Exhibit B
attached hereto, in each case provided from time to time by or on behalf of the Buyer to the Company or any of its directors, officers,
employees, counsel, accountants, agents or other representatives or updated from time to time by or on behalf of the Buyer;
or (ii) from the failure of the Buyer to deliver or to cause to be delivered the prospectus made available by the Company.
Such indemnity shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 7.

 

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c.           Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be, and upon such notice, the indemnifying party shall not be liable to the Indemnified Person or Indemnified Party for
any legal or other expenses subsequently incurred by the Indemnified Person or Indemnified Party in connection with the defense
thereof; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with
the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented
by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate with the indemnifying party in
connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised as to the status of the defense or
any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person,
consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating
to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability
to defend such action.

 

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7.           ASSIGNMENT
OF REGISTRATION RIGHTS.

 

The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer. The Buyer may not assign
its rights under this Agreement without the prior written consent of the Company.

 

8.           AMENDMENT
OF REGISTRATION RIGHTS.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively) only with the written consent of the Company and the Buyer.

 

9.           MISCELLANEOUS.

 

a.           Any
notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii)
upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation of both electronic
messages are kept on file by the sending party); or (iv) one (1) Business Day after timely deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

 

If to the Company:

 

NET ELEMENT, INC.

3363 NE 163rd Street, Suite 705

North Miami Beach, FL 33160

		Telephone:	(786) 923-0515

		Facsimile:	(786) 272-0696

		E-mail:	swolberg@netelement.com

		Attention:	Chief Legal Officer

 

If to the Buyer:

 

COBBLESTONE CAPITAL PARTNERS,
LLC

42 Patriot Hill Drive

Baskin Ridge, NJ 07920

		Telephone:	______________

		Facsimile:	______________

		Attention:	Dahlia Harmon

		Email:	dahlia1128@icloud.com

 

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or at such other address and/or facsimile number
and/or to the attention of such other person as the recipient party has specified by written notice given to each other party one
(1) Business Day prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing
the time, date, and recipient facsimile number, (C) electronically generated by the sender’s electronic mail containing the
time, date and recipient email address or (D) provided by a nationally recognized overnight delivery service, shall be rebuttable
evidence of receipt in accordance with clause (i), (ii), (iii) or (iv) above, respectively. Any party to this Agreement may give
any notice or other communication hereunder using any other means (including messenger service, ordinary mail or electronic mail),
but no such notice or other communication shall be deemed to have been duly given unless it actually is received by the party for
whom it is intended.

 

b.           No
failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power
or privilege.

 

c.           The
corporate laws of the State of Delaware shall govern all issues concerning the relative rights
of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of Florida, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Florida or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of Florida. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the County of Miami-Dade, Florida 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 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 manner permitted by law. If any provision of this Agreement
shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in
any other jurisdiction. 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 HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

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d.           This
Agreement, the Purchase Agreement and the other Transaction Documents constitute the entire understanding among the parties
hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. This Agreement, the Purchase Agreement and the other
Transaction Documents supersede all other prior oral or written agreements between the Buyer, the Company, their affiliates and
persons acting on their behalf with respect to the subject matter hereof and thereof.

 

e.           Subject
to the requirements of Section 7, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

f.            The
headings in this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

g.           This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
or pdf (or other electronic reproduction of a) signature shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not a facsimile or pdf (or other electronic reproduction
of a) signature.

 

h.           Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

i.            The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

j.            This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

 

* * * * *

 

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IN WITNESS WHEREOF, the parties have
caused this Registration Rights Agreement to be duly executed as of day and year first above written.

 

	 	THE COMPANY:
	 	 
	 	NET ELEMENT, INC.
	 	 	 
	 	By:	/s/ Oleg Firer	 
	 	Name:  	 Oleg Firer	 
	 	Title:	CEO	 
	 	 	 
	 	BUYER:
	 	 
	 	COBBLESTONE CAPITAL PARTNERS, LLC
	 	 	 
	 	By:	/s/ Dahlia Harman	 
	 	Name: 	 Dahlia Harman	 
	 	Title:	Managing Member	 

 

     

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION
STATEMENT

 

[Date]

 

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor

New York, NY 10004

E-mail: mmullings@continentalstock.com

Attention: Michael G. Mullings

 

RE: NET ELEMENT, INC.

 

Ladies and Gentlemen:

 

We refer to that certain Common Stock Purchase
Agreement, dated as of July ___, 2017 (the “Purchase Agreement”), entered into by and between NET ELEMENT, INC.,
a Delaware corporation (the “Company”) and COBBLESTONE CAPITAL PARTNERS, LLC (the “Buyer”)
pursuant to which the Company has agreed to issue to the Buyer shares of the Company’s Common Stock, par value $0.0001 per
share (the “Common Stock”), in an amount up to Ten Million Dollars ($10,000,000), in accordance with the terms
of the Purchase Agreement. In connection with the transactions contemplated by the Purchase Agreement, the Company has registered
with the U.S. Securities and Exchange Commission (the “SEC”) the sale by the Buyer of the following shares of
Common Stock:

 

		(1)	up to [Total # of Purchase Shares] shares of Common
Stock to be issued upon purchase from the Company by the Buyer from time to time (the “Purchase Shares.”);
and

 

		(2)	[___________] shares of Common Stock to be issued to the
Buyer as a commitment fee (the “Commitment Shares”).

 

In connection with the transactions contemplated
by the Purchase Agreement, the Company has filed a registration statement on Form S-3 (File No. 333_______) (the “Registration
Statement”) with the SEC relating to the sale by the Buyer of the Purchase Shares and the Commitment Shares. Accordingly,
we advise you that (i) the SEC has entered an order declaring the Registration Statement effective under the Securities Act of
1933 Act (the “1933 Act”) on ______, 2017, (ii) we have no knowledge, after review of the stop order notification
website maintained by the SEC, that any stop order suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and (iii) the Purchase Shares and the Commitment Shares are available for
sale under the 1933 Act pursuant to the Registration Statement. Accordingly, and in reliance on certain covenants made by the Buyer
regarding the manner of sale of the Shares, certificates representing the Shares may be issued without any restrictive legend.

 

     

     

    

 

	 	Very truly yours,
	 	 
	 	Net Element, Inc.
	 	 	 
	 	By:	 	 
	 	Name:  	 	 
	 	Title:	 	 

 

		CC:	Cobblestone Capital Partners, LLC

 

     

     

    

 

EXHIBIT B

 

Information About The Buyer Furnished To
The Company By The Buyer

Expressly For Use In Connection With The
Registration Statement and Prospectus

 

__________ is the [Managing Member] of Cobblestone
Capital Partners, LLC (“Cobblestone Capital”). ____________ may be deemed to be a beneficial owner of common
stock held by Cobblestone Capital. _____________ disclaims beneficial ownership of the common stock held by Cobblestone
Capital.

 

Plan of Distribution

 

The common stock offered by this prospectus
is being offered by Cobblestone Capital, the selling stockholder. The common stock may be sold or distributed from time to time
by the selling stockholder directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as
agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices,
or at fixed prices, which may be changed. The sale of the common stock offered by this prospectus may be effected in one or more
of the following methods:

 

		·	ordinary brokers’ transactions;

 

		·	transactions involving cross or block trades;

 

		·	through brokers, dealers, or underwriters who may act solely as agents;

 

		·	“at the market” into an existing market for the common stock;

 

		·	in other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected
through agents;

 

		·	in privately negotiated transactions; or

 

		·	any combination of the foregoing.

 

In order to comply with the securities laws
of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers. In addition, in
certain states, the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption
from the registration or qualification requirement is available and complied with.

 

The selling stockholder may also sell shares
of common stock under Rule 144 promulgated under the Securities Act, if available, rather than under this prospectus. In addition,
the selling stockholder may transfer the shares of common stock by other means not described in this prospectus.

 

Brokers, dealers, underwriters, or agents participating
in the distribution of the shares as agents may receive compensation in the form of commissions, discounts, or concessions from
the selling stockholder and/or purchasers of the common stock for whom the broker-dealers may act as agent. Cobblestone Capital
has informed us that each such broker-dealer will receive commissions from Cobblestone Capital which will not exceed customary
brokerage commissions.

 

     

     

    

 

Cobblestone Capital is an “underwriter”
within the meaning of the Securities Act.

 

Neither we nor Cobblestone Capital can presently
estimate the amount of compensation that any agent will receive. We know of no existing arrangements between Cobblestone Capital,
any other shareholder, broker, dealer, underwriter, or agent relating to the sale or distribution of the shares offered by this
prospectus. At the time a particular offer of shares is made, a prospectus supplement, if required, will be distributed that will
set forth the names of any agents, underwriters, or dealers and any compensation from the selling stockholder, and any other required
information. Pursuant to a requirement of the Financial Industry Regulatory Authority, or FINRA, the maximum commission or discount
and other compensation to be received by any FINRA member or independent broker-dealer shall not be greater than eight percent
(8%) of the gross proceeds received by us for the sale of any securities being registered pursuant to Rule 415 under the Securities
Act.

 

We will pay all of the expenses incident to
the registration, offering, and sale of the shares to the public other than commissions or discounts of underwriters, broker-dealers,
or agents. We have agreed to indemnify Cobblestone Capital and certain other persons against certain liabilities in connection
with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act or, if such
indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Cobblestone Capital has agreed
to indemnify us against liabilities under the Securities Act that may arise from certain written information furnished to us by
Cobblestone Capital specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required
to be paid in respect of such liabilities.

 

Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to our directors, officers, and controlling persons, we have been advised that in the
opinion of the SEC this indemnification is against public policy as expressed in the Securities Act and is therefore, unenforceable.

 

Cobblestone Capital and its affiliates have
agreed not to engage in any direct or indirect short selling or hedging of our common stock during the term of the Purchase Agreement.

 

We have advised Cobblestone Capital that while
it is engaged in a distribution of the shares included in this prospectus it is required to comply with Regulation M promulgated
under the Securities Exchange Act of 1934, as amended. With certain exceptions, Regulation M precludes the selling stockholder,
any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing,
or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire
distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security
in connection with the distribution of that security. All of the foregoing may affect the marketability of the shares offered hereby
this prospectus.

 

We may suspend the sale of shares by Cobblestone
Capital pursuant to this prospectus for certain periods of time for certain reasons, including if the prospectus is required to
be supplemented or amended to include additional material information.

  

This offering will terminate on the date that
all shares offered by this prospectus have been sold by Cobblestone Capital.Exhibit 10.1

 

COMMON STOCK PURCHASE AGREEMENT

 

COMMON STOCK PURCHASE
AGREEMENT (the “Agreement”), dated as of July 5, 2017, by and between NET ELEMENT, INC., a Delaware
corporation (the “Company”), and COBBLESTONE CAPITAL PARTNERS, LLC, a New York limited liability company
(the “Buyer”). Capitalized terms used herein and not otherwise defined herein are defined in Section 10 hereof.

 

WHEREAS:

 

Subject to the terms and
conditions set forth in this Agreement, the Company wishes to sell to the Buyer, and the Buyer wishes to buy from the Company,
up to Ten Million Dollars ($10,000,000) of the Company’s common stock, par value $0.0001 (the “Common Stock”).
The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares.”

 

NOW THEREFORE, the
Company and the Buyer hereby agree as follows:

 

		1.	PURCHASE OF COMMON STOCK.

 

Subject to the terms and
conditions set forth in this Agreement, the Company has the right to sell to the Buyer, and the Buyer has the obligation to purchase
from the Company, Purchase Shares as follows:

 

(a)          Commencement
of Purchases of Common Stock. After the Commencement Date (as defined below), the purchase and sale of Purchase Shares hereunder
shall occur from time to time upon written notices by the Company to the Buyer on the terms and conditions as set forth herein
following the satisfaction of the conditions (the “Commencement”) as set forth in Sections 6 and 7 below (the
date of satisfaction of such conditions, the “Commencement Date”).

 

(b)          The
Company’s Right to Require Regular Purchases. Subject to the terms and conditions of this Agreement, on any given
Business Day after the Commencement Date (as often as every other Business Day), the Company shall have the right but not the
obligation to direct the Buyer by its delivery to the Buyer of a Purchase Notice from time to time, and the Buyer thereupon
shall have the obligation, to buy the number of Purchase Shares specified in such notice, up to 200,000 Purchase Shares (with
such amounts increasing as the Common Stock price increases as set forth below), on such Business Day (as long as such notice
is delivered on or before 5:00 p.m. Eastern time on such Business Day) (each such purchase, a “Regular
Purchase”) at the Purchase Price on the Purchase Date; provided, however, that in no event shall the Purchase
Amount of a Regular Purchase exceed One Million Dollars ($1,000,000) per Business Day; and provided, further, that in the
event the Company is delisted from its Principal Market, such obligation of the Buyer shall be reduced to an obligation to
purchase up to 100,000 Purchase Shares on such Business Day. The number of Purchase Shares for each Regular Purchase may be
increased to up to 750,000 Purchase Shares if the Consolidated Closing Bid Price of the Common Shares is not below $0.50 per
share on the date of the applicable Purchase Notice and to up to 1,000,000 Purchase Shares if the Consolidated Closing Bid
Price of the Common Shares is not below $1.00 per share on the date of the applicable Purchase Notice; provided, however,
that in the event the Company is delisted from its Principal Market, such obligation of the Buyer shall be reduced to an
obligation to purchase up to 375,000 Purchase Shares if the Consolidated Closing Bid Price of the Commons Shares is not below
$0.50 per share on the date of the applicable Purchase Notice and up to 500,000 Purchase Shares if the Consolidated Closing
Bid Price of the Common Shares is not below $1.00 per share on the date of the applicable Purchase Notice. The Company may
deliver additional Purchase Notices to the Buyer from time to time so long as the most recent purchase has been completed.
The share amounts set forth in this Section 1(b) shall be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split, or other similar transaction.

 

     

     

    

 

(c)          VWAP
Purchases. Subject to the terms and conditions of this Agreement, in addition to the Company’s right to require Regular
Purchases as described in Section 1(b) above, with one Business Day’s prior written notice (as long as such notice is delivered
on or before 5:00 p.m. Eastern time on the Business Day immediately preceding the VWAP Purchase Date), the Company shall also have
the right but not the obligation to direct the Buyer by the Company’s delivery to the Buyer of a VWAP Purchase Notice from
time to time, and the Buyer thereupon shall have the obligation, to buy, at the VWAP Purchase Price, the number of shares of Common
Stock indicated by the Company in the applicable VWAP Purchase Notice (such number to not exceed the lesser of (i) two (2) times
the maximum number of shares allowed to be sold for a Regular Purchase with applicable Consolidated Closing Bid Prices or (ii)
twenty percent (20%) of the trading volume of the Common Stock on the Principal Market during normal trading hours on the VWAP
Purchase Date) (each such purchase, a “VWAP Purchase”). The Company may deliver a VWAP Purchase Notice to the
Buyer on or before 5:00 p.m. Eastern time on a date on which the Company also submitted a Purchase Notice for a Regular Purchase.
Each VWAP Purchase Notice must be accompanied by instructions to the Company’s Transfer Agent to immediately issue to the
Buyer an amount of Common Stock equal to the VWAP Purchase Share Estimate, a good faith estimate by the Company of the number of
Purchase Shares that the Buyer shall have the obligation to buy pursuant to the VWAP Purchase Notice. In no event shall the Buyer,
pursuant to any VWAP Purchase, purchase a number of Purchase Shares that exceeds the VWAP Purchase Share Estimate issued on the
VWAP Purchase Date in connection with such VWAP Purchase Notice. The Buyer will immediately return to the Company any amount of
Common Stock issued pursuant to the VWAP Purchase Share Estimate that exceeds the number of Purchase Shares the Buyer actually
purchases in connection with such VWAP Purchase. Following each VWAP Purchase Date, the Buyer shall submit to the Company a confirmation
of the VWAP Purchase in form and substance reasonably acceptable to the Company. The Company may deliver additional VWAP Purchase
Notices to the Buyer from time to time so long as the most recent purchase has been completed and so long as the Consolidated Closing
Bid Price is not below $0.25 on the Purchase Date. The Company may, by written notice to the Buyer, in its sole discretion at any
time after the date of this Agreement, suspend or terminate this Section 1(c) and its right to direct the Buyer to make VWAP Purchases.

 

(d)          Payment
for Purchase Shares. For each Regular Purchase, the Buyer shall pay to the Company an amount equal to the Purchase Amount applicable
to such Regular Purchase as full payment for such Purchase Shares via wire transfer of immediately available funds on the same
Business Day that the Buyer receives such Purchase Shares. For each VWAP Purchase, the Buyer shall pay to the Company an amount
equal to the VWAP Purchase Amount as full payment for such Purchase Shares via wire transfer of immediately available funds on
the third Business Day following the VWAP Purchase Date. All payments made under this Agreement shall be made in lawful money of
the United States of America via wire transfer of immediately available funds to such account as the Company may from time to time
designate by written notice in accordance with the provisions of this Agreement. Whenever any amount expressed to be due by the
terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day
that is a Business Day.

 

(e)          Purchase
Price Floor. The Company and the Buyer shall not effect any sales under this Agreement on any Purchase Date where the Consolidated
Closing Bid Price is less than the Floor Price. “Floor Price” means $0.25 per share of Common Stock.

 

(f)          Records
of Purchases. The Buyer and the Company shall each maintain records showing the remaining Available Amount at any given time
and the dates and purchase amounts for each purchase, or shall use such other method reasonably satisfactory to the Buyer and the
Company to reconcile the remaining Available Amount.

 

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(g)          Taxes.
The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance and delivery
of any shares of Common Stock to the Buyer made under this Agreement.

 

(h)          Compliance
with Principal Market Rules. Notwithstanding anything in this Agreement to the contrary, and in addition to the limitations
set forth in Section 1(e), the total number of shares of Common Stock that may be issued under this Agreement, including the Commitment
Shares (as defined in Section 4(e) hereof), shall be limited to such number of shares of Common Stock that equals 19.99% of the
Company’s outstanding shares of Common Stock as of the date hereof (the “Exchange Cap”), unless stockholder
approval is obtained to issue more than such 19.99%. The Exchange Cap shall be appropriately adjusted for any stock dividend, stock
split, reverse stock split or similar transaction. The foregoing limitation shall not apply if such stockholder approval has not
been obtained and at any time the Exchange Cap is reached and at all times thereafter the average price paid for all shares of
Common Stock issued under this Agreement is equal to or greater than a price equal to the Consolidated Closing Bid Price on the
date hereof (the “Minimum Price”) (in such circumstance, for purposes of the Principal Market, the transaction
contemplated hereby would not be “below market” and the Exchange Cap would not apply). Notwithstanding the foregoing,
the Company shall not be required or permitted to issue, and the Buyer shall not be required to purchase, any shares of Common
Stock under this Agreement if such issuance would violate the rules or regulations of the Principal Market.

 

(i)          Beneficial
Ownership Limitation. The Company shall not issue and the Buyer shall not purchase any shares of Common Stock under this Agreement
if such shares proposed to be issued and sold, when aggregated with all other shares of Common Stock then owned beneficially (as
calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by the Buyer and its affiliates
would result in the beneficial ownership by the Buyer and its affiliates of more than 9.99% of the then issued and outstanding
shares of Common Stock.

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

The Buyer represents and
warrants to the Company that as of the date hereof and as of the Commencement Date:

 

(a)          Investment
Purpose. The Buyer is entering into this Agreement and acquiring the Commitment Shares (as defined in Section 4(e) hereof)
and the Purchase Shares (the Purchase Shares and the Commitment Shares are collectively referred to herein as the “Securities”),
for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution
thereof; provided however, by making the representations herein, the Buyer does not agree to hold any of the Securities for any
minimum or other specific term.

 

(b)          Accredited
Investor Status. The Buyer is either a “qualified institutional buyer” as such term is defined in Rule 144A(a)(1)
of the 1933 Act or an institutional “accredited investor” as that term is defined in Rule 501(a)(3) of Regulation D
of the 1933 Act.

 

(c)          Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and the Buyer's compliance with, the representations, warranties, agreements, acknowledgments and understandings
of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire
the Securities.

 

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(d)          Information.
The Buyer has been furnished with all materials relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Securities that have been reasonably requested by the Buyer, including, without limitation,
the SEC Documents (as defined in Section 3(f) hereof). The Buyer understands that its investment in the Securities involves a high
degree of risk. The Buyer (i) is able to bear the economic risk of an investment in the Securities including a total loss, (ii)
has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the
proposed investment in the Securities and (iii) has had an opportunity to ask questions of and receive answers from the officers
of the Company concerning the financial condition and business of the Company and other matters related to an investment in the
Securities. The Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Securities.

 

(e)          No
Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)          Transfer
or Sale. The Buyer understands that except as provided in the Registration Rights Agreement (as defined in Section 4(a) hereof):
(i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered
for sale, sold, assigned or transferred unless (A) subsequently registered thereunder or (B) an exemption exists permitting such
Securities to be sold, assigned or transferred without such registration; (ii) any sale of the Securities made in reliance on Rule
144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities
under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that
term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations
of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register the Securities under
the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

(g)          Organization.
The Buyer is a limited liability company duly organized and validly existing in good standing under the laws of the State of New
York, and has the requisite organizational power and authority to own its properties and to carry on its business as now being
conducted.

 

(h)          Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Buyer and is a valid
and binding agreement of the Buyer enforceable against the Buyer in accordance with its terms, subject as to enforceability to
(i) general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and (ii) public policy
underlying any law, rule or regulation (including any federal or state securities law, rule or regulation) with regards to indemnification,
contribution or exculpation. The execution and delivery of the Transaction Documents by the Buyer and the consummation by it of
the transactions contemplated hereby and thereby do not conflict with the Buyer’s certificate of organization or operating
agreement or similar documents, and do not require further consent or authorization by the Buyer, its managers or its members.

 

(i)          Residency.
The Buyer is a resident of the State of New York.

 

(j)          No
Prior Short Selling. The Buyer represents and warrants to the Company that at no time prior to the date of this Agreement has
any of the Buyer, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) “short sale” (as such term is defined in Section 242.200 of Regulation SHO of the Securities Exchange Act of
1934, as amended (the “1934 Act”)) of the Common Stock or (ii) hedging transaction, which establishes a net
short position with respect to the Common Stock or any other Company’s securities.

 

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		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents
and warrants to the Buyer that as of the date hereof and as of the Commencement Date:

 

(a)          Organization
and Qualification. The Company and its “Subsidiaries” (which for purposes of this Agreement means any entity in
which the Company, directly or indirectly, owns more than 50% of the voting stock or capital stock or other similar equity interests)
are corporations or limited liability companies duly organized and validly existing in good standing under the laws of the jurisdiction
in which they are incorporated or organized, and have the requisite corporate or organizational power and authority to own their
properties and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly qualified as
a foreign corporation or limited liability company to do business and is in good standing in every jurisdiction in which its ownership
of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure
to be so qualified or be in good standing could not reasonably be expected to have a Material Adverse Effect. As used in this Agreement,
“Material Adverse Effect” means any material adverse effect on any of: (i) the business, properties, assets,
operations, results of operations or financial condition of the Company and its Subsidiaries, if any, taken as a whole, or (ii)
the authority or ability of the Company to perform its obligations under the Transaction Documents (as defined in Section 3(b)
hereof).

 

(b)          Authorization;
Enforcement; Validity. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement, the Registration Rights Agreement and each of the other agreements entered into by the parties on the Commencement
Date and attached hereto as exhibits to this Agreement (collectively, the “Transaction Documents”), and to issue
the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by
the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance
of the Commitment Shares and the reservation for issuance and the issuance of the Purchase Shares issuable under this Agreement,
have been duly authorized by the Company’s Board of Directors or duly authorized committee thereof, do not conflict with
the Company’s Amended and Restated Articles of Incorporation (as amended through the date hereof) or Bylaws (as mended through
the date hereof), and do not require further consent or authorization by the Company, its Board of Directors or its stockholders
(other than as contemplated by Section 1(h) hereof), (iii) this Agreement has been, and each other Transaction Document shall be
on the Commencement Date, duly executed and delivered by the Company and (iv) this Agreement constitutes, and each other Transaction
Document upon its execution on behalf of the Company, shall constitute, the valid and binding obligations of the Company enforceable
against the Company in accordance with their terms, except as such enforceability may be limited by (y) general principles of equity
or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally,
the enforcement of creditors' rights and remedies and (z) public policy underlying any law, rule or regulation (including any federal
or states securities law, rule or regulation) with regards to indemnification, contribution or exculpation. The Board of Directors
of the Company or duly authorized committee thereof has approved the resolutions (the “Signing Resolutions”)
substantially in the form as set forth as Exhibit A attached hereto to authorize this Agreement and the transactions contemplated
hereby. The Signing Resolutions are valid, in full force and effect and have not been modified or supplemented in any material
respect.

 

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(c)          Capitalization.
As of the date hereof, the authorized capital stock of the Company consists of (i) 400,000,000 shares of Common Stock, par value
$0.0001, of which as of the date hereof, 18,015,040 shares are issued and outstanding, and (ii) 1,000,000 shares of preferred stock,
of which as of the date hereof no shares are issued and outstanding. All of such outstanding shares have been, or upon issuance
will be, validly issued and are fully paid and non-assessable. Except as disclosed in SEC Documents (as defined below), no shares
of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company, (ii) there are no outstanding debt securities of the Company or any of its Subsidiaries,
(iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or
contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to
issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries, (iv) there are no material agreements or arrangements under which the Company
or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except the Registration
Rights Agreement), (v) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain
any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries, (vi) there are
no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities
as described in this Agreement and (vii) the Company does not have any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement. The Company will furnish to the Buyer upon Buyer’s written request
copies of the Company’s Amended and Restated Certificate of Incorporation, as amended and as in effect on the date hereof
(the “Certificate of Incorporation”), and the Company’s Bylaws, as amended and as in effect on the date
hereof (the “Bylaws”).

 

(d)          Issuance
of Securities. The Commitment Shares have been duly authorized and, upon issuance in accordance with the terms hereof, the
Commitment Shares shall be (i) validly issued, fully paid and non-assessable and (ii) free from all taxes, liens and charges with
respect to the issuance thereof. At least an additional 20,000,000 shares of Common Stock have been duly authorized and reserved
for issuance upon future purchase as Purchase Shares under this Agreement. Upon issuance and payment therefore in accordance with
the terms and conditions of this Agreement, such Purchase Shares shall be validly issued, fully paid and non-assessable and free
from all taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to
a holder of Common Stock.

 

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(e)          No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance and issuance
of the Purchase Shares) will not (i) result in a violation of the Certificate of Incorporation, including any Certificate of Designations,
Preferences and Rights of any outstanding series of preferred stock of the Company, or the Bylaws or (ii) constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries
is a party, or result, to the Company’s knowledge, in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and the rules and regulations of the Principal Market applicable to
the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound or
affected, except in the case of defaults, terminations, amendments, accelerations, cancellations and violations under clause (ii),
which could not reasonably be expected to result in a Material Adverse Effect. Except as disclosed in Schedule 3(e), neither the
Company nor its Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, including any
Certificate of Designation, Preferences and Rights of any outstanding series of preferred stock of the Company, or Bylaws or their
organizational charter or bylaws, respectively. Except as disclosed in Schedule 3(e), neither the Company nor any of its Subsidiaries
is in violation of any term of or is in default under any material contract, agreement, mortgage, indebtedness, indenture, instrument,
judgment, decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible
violations, defaults, terminations or amendments that could not reasonably be expected to have a Material Adverse Effect. The business
of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, ordinance, or
regulation of any governmental entity, except for possible violations, the sanctions for which either individually or in the aggregate
could not reasonably be expected to have a Material Adverse Effect. Except as specifically contemplated by this Agreement, reporting
obligations under the 1934 Act or as required under the 1933 Act or applicable state securities laws or the filing of a Listing
of Additional Shares Notification Form with the Principal Market, the Company is not required to obtain any consent, authorization
or order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory agency
in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents in accordance
with the terms hereof or thereof. Except for reporting obligations under the 1934 Act, all consents, authorizations, orders, filings
and registrations which the Company is required to obtain pursuant to the preceding sentence shall be obtained or effected on or
prior to the Commencement Date. The Company is not subject to any notices or actions from or to the Principal Market, except as
disclosed in the Current Report on Form 8-K filed by the Company with the SEC on December 30, 2016 and other than routine matters
incident to listing on the Principal Market and not involving a violation of the rules of the Principal Market. To the Company’s
knowledge, except as disclosed in the Current Reports on Form 8-K filed by the Company with the SEC on December 30, 2016 and on
July 3, 2017, the Principal Market has not commenced any delisting proceedings against the Company.

 

(f)          SEC
Documents; Financial Statements. The Company filed current Form 10 information with the SEC over 12 months ago. The Company
has filed all reports and other materials required to be filed by Section 13 or 15(d) of the 1934 Act, as applicable, during the
preceding 12 months (other than certain Form 8-K reports) (all of the foregoing filed prior to the date hereof and all exhibits
included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter
referred to as the “SEC Documents”).

 

(g)          Absence
of Certain Changes. Since December 31, 2016, there has been no material adverse change in the business, properties, operations,
financial condition or results of operations of the Company or its Subsidiaries taken as a whole.

 

(h)          Acknowledgment
Regarding Buyer’s Status. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s
length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further
acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Buyer or
any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and
thereby is merely incidental to the Buyer’s purchase of the Securities. The Company further represents to the Buyer that
the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives and advisors.

 

(i)          Intellectual
Property Rights. To the Company’s knowledge, the Company and its Subsidiaries own or possess adequate rights or licenses
to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights,
copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights
(collectively, “Intellectual Property”) necessary to conduct their respective businesses as now conducted, or
to the extent that the failure to own, possess, license or otherwise hold adequate rights to use Intellectual Property would not,
individually or in the aggregate, have a Material Adverse Effect. To the Company’s knowledge, none of the Company’s
active and registered Intellectual Property will expire or terminate by the terms and conditions thereof within two years from
the date of this Agreement which could reasonably be expected to have a Material Adverse Effect. The Company and its Subsidiaries
do not have any knowledge of any infringement by the Company or its Subsidiaries of any Intellectual Property of others and there
is no claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against,
the Company or its Subsidiaries regarding Intellectual Property, which could reasonably be expected to have a Material Adverse
Effect.

 

    -7- 

     

    

 

(j)          Environmental
Laws. To the Company’s knowledge, the Company and its Subsidiaries (i) are in material compliance with any and all applicable
foreign, federal, state and local laws and regulations relating to the protection of the environment or human health and safety
and with respect to hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”),
(ii) have received all material permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in material compliance with all terms and conditions of any such permit, license or approval,
except where, in each of the three foregoing clauses, the failure to so comply or receive such approvals could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(k)          Title.
The Company has good and marketable title to all personal property owned by them that is material to the business of the Company
free and clear of all liens, encumbrances and defects except such as do not materially affect the value of such property and do
not interfere with the use made and proposed to be made of such property by the Company or could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect. Any real property and facilities held under lease by the Company,
to the Company’s knowledge, are held by them under valid, subsisting and enforceable leases with such exceptions as are not
material and do not interfere with the use made and proposed to be made of such property and buildings by the Company.

 

(l)          Application
of Takeover Protections. The Company and its board of directors have taken or will take prior to the Commencement Date all
necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation or the
laws of the state of its incorporation which is or could become applicable to the Buyer as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company’s issuance of the Securities and the Buyer’s ownership
of the Securities.

 

		4.	COVENANTS.

 

(a)          Filing
of Form 8-K and Registration Statement. The Company agrees that it shall, within the time required under the 1934 Act, file
a Current Report on Form 8-K disclosing this Agreement and the transaction contemplated hereby. The Company shall use reasonable
commercial efforts to file with the SEC within Ten (10) Business Days from the date hereof a new registration statement covering
the sale of the Securities by the Buyer in accordance with the terms of the Registration Rights Agreement between the Company and
the Buyer, dated as of the date hereof (“Registration Rights Agreement”).

 

(b)          Blue
Sky. The Company shall take such action, if any, as is reasonably necessary in order to obtain an exemption for or to qualify
(i) the initial issuance of the Securities to the Buyer under this Agreement and (ii) any subsequent sale of the Securities by
the Buyer, in each case, under applicable securities or “Blue Sky” laws of the states of the United States in such
states as is reasonably requested by the Buyer from time to time, and shall provide evidence of any such action so taken to the
Buyer at its written request.

 

    -8- 

     

    

 

(c)          Listing.
The Company shall promptly secure the listing of all of the Securities upon each national securities exchange and automated quotation
system that requires an application by the Company for listing, if any, upon which shares of Common Stock are then listed (subject
to official notice of issuance) or traded (including, if at any time applicable, the OTC Bulletin Board, or the OTCQB or OTCQX
market places of the OTC Markets) and shall maintain such listing, so long as any other shares of Common Stock shall be so listed.
The Company shall use its reasonable commercial efforts to maintain the Common Stock’s listing on the Principal Market in
accordance with the requirements of the Registration Rights Agreement. Neither the Company nor any of its Subsidiaries shall take
any action that would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market,
unless the Common Stock is immediately thereafter traded on the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select
Market, the Nasdaq Global Market, the OTC Bulletin Board, or the OTCQB or OTCQX market places of the OTC Markets. The Company shall
pay all fees and expenses in connection with satisfying its obligations under this Section.

 

(d)          Limitation
on Short Sales and Hedging Transactions. The Buyer agrees that beginning on the date of this Agreement and ending on the date
of termination of this Agreement as provided in Section 10(k), the Buyer and its agents, representatives and affiliates shall not
in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Section 242.200 of Regulation SHO of the 1934 Act) of the Common Stock or (ii) hedging transaction, which establishes a net
short position with respect to the Common Stock or any other Company’s securities.

 

(e)          Issuance
of Commitment Shares. Upon the earlier of (i) on or one (1) Business Day after the date when the registration statement covering
the sale of the Securities by the Buyer shall have been declared effective under the 1933 Act by the SEC and no stop order with
respect to the registration statement shall be pending or threatened by the SEC or (ii) six months after the date of this Agreement,
the Company shall issue to the Buyer as consideration for the Buyer entering into this Agreement such number of shares of Common
Stock that would have a value equivalent to Two Hundred Thousand Dollars ($200,000) calculated using the average of volume weighted
average price for the Common Stock traded on the Principal Market during normal trading hours during the three (3) Trading Days
period immediately preceding the date of issuance of such shares (the “Commitment Shares”). Upon Buyer’s
execution and delivery of this Agreement, the Buyer’s irrevocable commitment pursuant to Section 1 hereof to purchase the
Purchase Shares shall be deemed full and sufficient consideration for the Commitment Shares, and the Commitment Shares shall vest
and be deemed to be earned as of the date that all parties enter into all Transaction Documents.

 

(f)          Due
Diligence. The Buyer shall have the right, from time to time as the Buyer may reasonably deem appropriate, to perform reasonable
due diligence on the Company during normal business hours and subject to reasonable prior notice to the Company. The Company and
its officers and employees shall provide information and reasonably cooperate with the Buyer in connection with any reasonable
request by the Buyer related to the Buyer’s due diligence of the Company, including, but not limited to, any such request
made by the Buyer in connection with (i) the filing of the registration statement described in Section 4(a) hereof and (ii) the
Commencement; provided, however, that at no time is the Company required or permitted to disclose material nonpublic information
to the Buyer or breach any obligation of confidentiality or non-disclosure to a third party or make any disclosure that could cause
a waiver of attorney-client privilege. Except as may be required by law, court order or governmental authority, each party hereto
agrees not to disclose any Confidential Information of the other party to any third party and shall not use the Confidential Information
of such other party for any purpose other than in connection with, or in furtherance of, the transactions contemplated hereby.
Each party hereto acknowledges that the Confidential Information shall remain the property of the disclosing party and agrees that
it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by the other party.

 

    -9- 

     

    

 

(g)          Disposition
of Securities. The Buyer shall not sell any Securities except as provided in this Agreement, the Registration Rights
Agreement and the “Plan of Distribution” section of the prospectus included in the Registration Statement.
The Buyer shall not transfer any Securities except pursuant to sales described in the “Plan of Distribution”
section of the prospectus included in the Registration Statement or pursuant to Rule 144 under the 1933 Act. In the event of
any sales of Securities pursuant to the Registration Statement, the Buyer will (i) effect such sales pursuant to the
“Plan of Distribution” section of the prospectus included in the Registration Statement, and (ii) will comply
with all applicable prospectus delivery requirements.

 

(h)          The
Company agrees that, without prior consent of the Buyer, during the lesser of (i) thirty (30) months from the date hereof or (ii)
the period when the Buyer still owns the Commitment Shares and Purchase Shares, the Company will not issue any floating conversion
rate or variable priced securities convertible into Common Stock if such convertible securities shall have no floor price associated
therewith. Nothing contained in this Section 4(h) or otherwise shall restrict the Company in effecting any at-the-market offerings
with a registered broker-dealer.

 

		5.	TRANSFER AGENT INSTRUCTIONS.

 

So long as the Buyer complies
with its obligations in Section 4(g), all of the Purchase Shares to be issued under this Agreement shall be issued without any
restrictive legend unless the Buyer expressly consents otherwise. The Company shall issue irrevocable instructions to the Transfer
Agent, and any subsequent transfer agent, to issue Common Stock in the name of the Buyer for the Purchase Shares (the “Irrevocable
Transfer Agent Instructions”). On or promptly after the date when the registration statement covering the sale of the
Securities by the Buyer shall have been declared effective under the 1933 Act by the SEC and no stop order with respect to the
registration statement shall be pending or threatened by the SEC, the Company shall deliver to the Transfer Agent an instruction
with respect to the issuance of the Commitment Shares.

 

		6.	CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK UNDER THIS
AGREEMENT.

 

The right of the Company
hereunder to commence sales of the Purchase Shares is subject to the satisfaction of each of the following conditions on or before
the Commencement Date (the date that the Company may begin sales of Purchase Shares):

 

		(a)	The Buyer shall have executed each of the Transaction Documents to which the Buyer is a party and
delivered the same to the Company; and

 

		(b)	A registration statement covering the sale of the Securities by the Buyer shall have been declared
effective under the 1933 Act by the SEC and no stop order with respect to the registration statement shall be pending or threatened
by the SEC.

 

		7.	CONDITIONS TO THE BUYER’S OBLIGATION TO MAKE PURCHASES OF SHARES OF COMMON STOCK.

 

The obligation of the Buyer
to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions on or before the
Commencement Date (the date that the Company may begin sales of Purchase Shares) and once such conditions have been initially satisfied,
there shall not be any ongoing obligation to satisfy such conditions after the Commencement has occurred:

 

(a)          The
Company shall have executed each of the Transaction Documents to which the Company is a party and delivered the same to the Buyer;

 

    -10- 

     

    

 

(b)          The
Company shall have issued to the Buyer the Commitment Shares;

 

(c)          The
Common Stock shall be authorized for quotation on the Principal Market;

 

(d)          The
Board of Directors of the Company or a duly authorized committee thereof shall have adopted resolutions substantially in the form
attached hereto as Exhibit A, which shall be in full force and effect without any amendment or supplement thereto as of
the Commencement Date;

 

(e)          As
of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose
of effecting future purchases of Purchase Shares hereunder, 20,000,000 shares of Common Stock;

 

(f)          The
Irrevocable Transfer Agent Instructions, in form acceptable to the Buyer, shall have been signed by the Company and the Buyer and
have been delivered to the Transfer Agent;

 

(g)          A
registration statement covering the sale of (i) all of the Commitment Shares and (ii) such number of additional Purchase Shares
as reasonably determined by the Company shall have been declared effective under the 1933 Act by the SEC and no stop order with
respect thereto shall be pending or threatened by the SEC. The Company shall have prepared and delivered to the Buyer a final and
complete form of prospectus, dated and current as of the Commencement Date, to be used by the Buyer in connection with any sales
of any Securities, and to be filed by the Company one (1) Business Day after the Commencement Date pursuant to Rule 424(b). The
Company shall have made all filings under all applicable federal and state securities laws necessary to consummate the issuance
of the Commitment Shares and the Purchase Shares pursuant to this Agreement in compliance with such laws;

 

(h)          No
Event of Default has occurred and is continuing, or any event which, after notice and/or lapse of time, would become an Event of
Default has occurred; and

 

(i)          On
or prior to the Commencement Date, the Company shall take all necessary action, if any, and such actions as reasonably requested
by the Buyer, in order to render inapplicable any control share acquisition, business combination, stockholder rights plan or poison
pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation
or the laws of the state of its incorporation, that is or could become applicable to the Buyer as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company's issuance of the Securities and the Buyer's ownership
of the Securities.

 

		8.	EVENTS OF DEFAULT. 

 

An “Event of Default”
shall be deemed to have occurred at any time as the following events occurs:

 

(a)          while
any registration statement is required to be maintained effective pursuant to the terms of the Registration Rights Agreement, the
effectiveness of such registration statement lapses for any reason (including, without limitation, the issuance of a stop order)
or is unavailable to the Buyer for the sale of all of the Registrable Securities (as defined in the Registration Rights Agreement),
and such lapse or unavailability continues for a period of thirty ten (10) consecutive Business Days or for more than an aggregate
of thirty (30) Business Days in any 365-day period, which is not in connection with a post-effective amendment to any such registration
statement or the filing of a new registration statement; provided, however, that in connection with any post-effective amendment
to such registration statement or filing of a new registration statement that is required to be declared effective by the SEC,
such lapse or unavailability may continue for a period of no more than sixty (60) consecutive Business Days, which such period
shall be extended for up to an additional thirty (30) Business Days if the Company receives a comment letter from the SEC in connection
therewith;

 

    -11- 

     

    

  

(b)          the
suspension of the Common Stock from trading for a period of one (1) trading day;

 

(c)          the
delisting of the Common Stock from the Principal Market, and the Common Stock is not promptly thereafter trading on the New York
Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the OTB Bulletin Board or the OTCQB marketplace
or OTCQX marketplace of the OTC Markets Group;

 

(d)          the
Company’s breach of any representation or warranty (as of the dates made), covenant or other term or condition under any
Transaction Document if such breach could reasonably be expected to have a Material Adverse Effect and except only if such breach
continues uncured for a period of at least twenty (20) Business Days;

 

(e)          if
the Company pursuant to or within the meaning of any Bankruptcy Law; (A) commences a voluntary case, (B) consents to the entry
of an order for relief against it in an involuntary case, (C) consents to the appointment of a Custodian of it or for all or substantially
all of its and its Subsidiaries’ property, or (D) makes a general assignment for the benefit of its creditors;

 

(f)          a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company in
an involuntary case, (B) appoints a Custodian of the Company or for all or substantially all of its and its Subsidiaries’
property, or (C) orders the liquidation of the Company;

 

(g)          if
the Company is listed on a national exchange or market (excluding the OTC Markets, OTC Bulletin Board or comparable market), if
at any time after the Commencement Date, the Exchange Cap is reached unless and until stockholder approval is obtained pursuant
to Section 1(h) hereof. The Exchange Cap shall be deemed to be reached at such time if, upon submission of a Purchase Notice or
VWAP Purchase Notice under this Agreement, the issuance of such shares of Common Stock would exceed that number of shares of Common
Stock which the Company may issue under this Agreement without breaching the Company’s obligations under the rules or regulations
of the Principal Market; or

 

(h)          the
Company ceases for more than one (1) Business Day to be eligible, through its Transfer Agent, to issue and transfer shares of Common
Stock electronically to third parties via the DTC FAST Program of DTC’s DWAC system.

 

So long as an Event of Default has occurred
and is continuing, or so long as the Consolidated Closing Bid Price is below the Floor Price, the Company may not require and the
Buyer shall not be obligated or permitted to purchase any shares of Common Stock under this Agreement.

 

		9.	CERTAIN DEFINED TERMS.

 

For purposes of this Agreement,
the following terms shall have the following meanings:

 

(a)          “1933
Act” means the Securities Act of 1933, as amended.

 

(b)          “Available
Amount” means initially Ten Million Dollars ($10,000,000) in the aggregate which amount shall be reduced by the Purchase
Amount each time the Buyer purchases shares of Common Stock pursuant to Section 1 hereof.

 

(c)          “Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

    -12- 

     

    

 

(d)          “Business
Day” means any day on which the Principal Market is open for trading during normal trading hours (i.e., 9:30 a.m. to
4:00 p.m. Eastern Time), including any day on which the Principal Market is open for trading for a period of time less than the
customary time.

 

(e)          “Consolidated
Closing Bid Price” means the consolidated closing bid price for the Common Stock on the Principal Market as reported
by the Principal Market.

 

(f)           “Confidential
Information” means any information disclosed by either party to the other party, either directly or indirectly, in writing,
orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment),
which is designated as "Confidential," "Proprietary" or some similar designation. Confidential Information
may also include information disclosed to a disclosing party by third parties. Confidential Information shall not, however, include
any information which (i) was publicly known and made generally available in the public domain prior to the time of disclosure
by the disclosing party; (ii) becomes publicly known and made generally available after disclosure by the disclosing party to the
receiving party through no action or inaction of the receiving party; (iii) is already in the possession of the receiving party
at the time of disclosure by the disclosing party as shown by the receiving party’s files and records immediately prior to
the time of disclosure; (iv) is obtained by the receiving party from a third party without a breach of such third party’s
obligations of confidentiality; (v) is independently developed by the receiving party without use of or reference to the disclosing
party’s Confidential Information, as shown by documents and other competent evidence in the receiving party’s possession;
or (vi) is required by law to be disclosed by the receiving party, provided that the receiving party gives the disclosing party
prompt written notice of such requirement prior to such disclosure and assistance in obtaining an order protecting the information
from public disclosure.

 

(g)          “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(h)          “Maturity
Date” means the date that is thirty (30) months from the Commencement Date.

 

(i)           “Person”
means an individual or entity including any limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization and a government or any department or agency thereof.

 

(j)           “Principal
Market” means the Nasdaq Capital Market; provided however, that in the event the Company’s Common Stock is ever
listed or traded on the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the OTC
Bulletin Board or either of the OTCQB marketplace or the OTCQX marketplace of the OTC Markets Group, then the “Principal
Market” shall mean such other market or exchange on which the Company’s Common Stock is then listed or traded.

 

(k)          “Purchase
Amount” means, with respect to any particular purchase made hereunder, the portion of the Available Amount to be purchased
by the Buyer pursuant to Section 1 hereof as set forth in a valid Purchase Notice or VWAP Purchase Notice which the Company delivers
to the Buyer.

 

(l)           “Purchase
Date” means with respect to any Regular Purchase made hereunder, the Business Day of receipt by the Buyer of a valid
Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section 1(b) hereof.

    -13- 

     

    

 

(m)       “Purchase Notice”
shall mean an irrevocable written notice from the Company to the Buyer directing the Buyer to buy Purchase Shares pursuant to Section
1(b) hereof as specified by the Company therein at the applicable Purchase Price on the Purchase Date.

 

(n)          “Purchase
Price” means the lesser of (i) the Consolidated Closing Bid Price on the Purchase Date or (ii) the arithmetic average
of the three (3) lowest Consolidated Closing Bid Prices for the Common Stock during the ten (10) consecutive Business Days ending
on the Business Day immediately preceding such Purchase Date (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(o)          “Sale
Price” means any trade price for the shares of Common Stock on the Principal Market during normal trading hours, as reported
by the Principal Market.

 

(p)          “SEC”
means the United States Securities and Exchange Commission.

 

(q)          “Transfer
Agent” means the transfer agent of the Company as set forth in Section 10(f) hereof or such other person who is then
serving as the transfer agent for the Company in respect of the Common Stock.

 

(r)          “VWAP
Purchase Amount” means, with respect to any particular VWAP Purchase Notice, the portion of the Available Amount to be
purchased by the Buyer pursuant to Section 1(c) hereof as set forth by the Company in the applicable VWAP Purchase Notice.

 

(t)           “VWAP
Purchase Date” means, with respect to any VWAP Purchase made hereunder, the Business Day following the receipt by
the Buyer of a valid VWAP Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section 1(c) hereof.

 

(u)          “VWAP
Purchase Notice” shall mean an irrevocable written notice from the Company to the Buyer directing the Buyer to buy Purchase
Shares on the VWAP Purchase Date pursuant to Section 1(c) hereof as specified by the Company therein at the applicable VWAP Purchase
Price with the applicable the number of the shares of Common Stock specified therein pursuant to Section 1(c) hereof.

 

(v)          “VWAP
Purchase Price” means the lesser of (i) the Consolidated Closing Bid Price on the VWAP Purchase Date; or (ii)
ninety-five percent (95%) of volume weighted average price for the Common Stock traded on the Principal Market during normal trading
hours on the VWAP Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock
split, reverse stock split or other similar transaction).

 

(w)        
“VWAP Purchase Share Estimate” means the number of shares of Common Stock that the Company has in its sole discretion
irrevocably instructed its Transfer Agent to issue to the Buyer via the Depository Trust Company (“DTC”) Fast
Automated Securities Transfer Program in connection with a VWAP Purchase Notice pursuant to Section 1(c) hereof and issued to the
Buyer’s or its designee’s balance account with DTC through its Deposit Withdrawal At Custodian (DWAC) system on the
VWAP Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse
stock split or other similar transaction).

 

    -14- 

     

    

 

		10.	MISCELLANEOUS.

 

(a)          Governing
Law; Jurisdiction; Jury Trial. The corporate laws of the State of Delaware shall govern all issues concerning the relative
rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation
of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the County of New York, Florida, for the adjudication
of any dispute hereunder or under the other Transaction Documents or in connection herewith or therewith, 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 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 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 HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

(b)          Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
or pdf (or other electronic reproduction) signature shall be considered due execution and shall be binding upon the signatory thereto
with the same force and effect as if the signature were an original, not a facsimile or PDF (or other electronic reproduction)
signature.

 

(c)          Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

(d)          Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(e)          Entire
Agreement. This Agreement and the Registration Rights Agreement supersede all other prior oral or written agreements between
the Buyer, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this
Agreement, the other Transaction Documents and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges
and agrees that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than
as expressly set forth in this Agreement.

 

(f)           Notices.
Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii)
upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation of both electronic
messages are kept on file by the sending party); or (iv) one (1) Business Day after timely deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

 

    -15- 

     

    

 

If to the Company:

 

Net Element, Inc.

3363 NE 163rd Street, Suite 705

North Miami Beach, FL 33160

		Telephone:	(786) 923-0515

		Facsimile:	(786) 272-0696

		E-mail:	swolberg@netelement.com

		Attention:	Chief Legal Officer

 

If to the Buyer:

 

COBBLESTONE CAPITAL PARTNERS, LLC

42 Patriot Hill Drive

Baskin Ridge, NJ 07920

		Telephone:	___________

		Facsimile:	___________

		Attention:	Dahlia Harmon

		Email:	dahlia1128@icloud.com

 

If to the Transfer Agent:

 

Continental Stock Transfer & Trust
Company

17 Battery Place, 8th Floor

New York, NY 10004

Telephone: (212) 845-3217

E-mail: mmullings@continentalstock.com

Attention: Michael G. Mullings

 

or at such other address and/or facsimile number
and/or to the attention of such other person as the recipient party has specified by written notice given to each other party one
(1) Business Day prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing
the time, date, and recipient facsimile number, (C) electronically generated by the sender’s electronic mail containing the
time, date and recipient email address or (D) provided by a nationally recognized overnight delivery service, shall be rebuttable
evidence of receipt in accordance with clause (i), (ii), (iii) or (iv) above, respectively.

 

(g)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Buyer, including by merger or consolidation. The Buyer may not assign its rights or obligations under this Agreement.

 

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

 

(i)           Public
Disclosure. The Company shall be entitled, without the prior approval of the Buyer, to make any press release or other public
disclosure (including any filings with the SEC) with respect to the transactions contemplated hereby as is required by applicable
law and regulations. 

 

    -16- 

     

    

 

(j)          Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(k)          Termination.
This Agreement may be terminated only as follows:

 

(i)          If
pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case, a Custodian is appointed for the
Company or for all or substantially all of its and its Subsidiaries’ property, or the Company makes a general assignment
for the benefit of its creditors (any of which would be an Event of Default as described in Sections 8(e) and 8(f) hereof),
the Buyer will have the right, by delivering a prior five (5) Business Days’ notice to the Company, terminate this Agreement.

 

(ii)         The
Company shall have the option to terminate this Agreement for any reason or for no reason upon sending to the Buyer a one (1) Business
Day prior notice without any liability whatsoever of either party to the other party under this Agreement.

 

(iii)        
This Agreement shall automatically terminate on the date that the Company sells and the Buyer purchases the full Available Amount
as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to
any other party under this Agreement.

 

(iv)        If
by the Maturity Date for any reason or for no reason the full Available Amount under this Agreement has not been purchased as provided
for in Section 1 of this Agreement, this Agreement shall automatically terminate on the Maturity Date, without any action or notice
on the part of any party and without any liability whatsoever of any party to any other party under this Agreement.

 

(v)         Except
as set forth in Sections 10(k)(iii) and 10(k)(iv), any termination of this Agreement pursuant to this Section 10(k) shall be effected
by written notice from the Company to the Buyer, or the Buyer to the Company, as the case may be, setting forth the basis for the
termination hereof.

 

(vi)        No
termination of this Agreement shall affect the Company’s or the Buyer’s rights or obligations under this Agreement
with respect to pending purchases and the Company and the Buyer shall complete their respective obligations with respect to any
pending purchases under this Agreement.

 

(l)          No
Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Buyer that it has not engaged
any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Buyer represents
and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or finder in connection with
the transactions contemplated hereby. Each party shall be responsible for the payment of any fees or commissions, if any, of any
financial advisor, placement agent, broker or finder engaged by such party relating to or arising out of the transactions contemplated
hereby. Each party shall pay, and hold the other party harmless against, any liability, loss or expense (including, without limitation,
attorneys' fees and out of pocket expenses) arising in connection with any such claim.

 

    -17- 

     

    

 

(m)         No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(n)          Failure
or Indulgence Not Waiver. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise
thereof or of any other right, power or privilege.

  

[Signatures are on next
page.]

 

    -18- 

     

    

 

IN WITNESS WHEREOF, the Buyer and the
Company have caused this Common Stock Purchase Agreement to be duly executed as of the date first written above.

 

	 	THE COMPANY:
	 	 
	 	NET ELEMENT, INC.
	 	 
	 	By:	/s/ Oleg Firer	 
	 	Name: 	 Oleg Firer	 
	 	Title:	CEO	 

 

	 	BUYER:
	 	 
	 	COBBLESTONE CAPITAL PARTNERS, LLC
	 	 
	 	By:	/s/ Dahlia Harman	 
	 	Name:  	 Dahlia Harman	 
	 	Title:	Managing Member	 

 

    -19- 

     

    

 

EXHIBIT A

 

FORM OF COMPANY RESOLUTIONS

FOR SIGNING PURCHASE AGREEMENT

AND APPROVING REGISTRATION STATEMENT

 

WHEREAS, management has
reviewed with the Board of Directors the background, terms and conditions of the transactions subject to the Common Stock Purchase
Agreement (the “Purchase Agreement”) by and between the Company and COBBLESTONE CAPITAL PARTNERS LLC (“Cobblestone”),
including all materials terms and conditions of the transactions subject thereto, providing for the purchase by Cobblestone of
up to Ten Million Dollars ($10,000,000) of the Company’s common stock, par value $0.0001 per share (the “Common
Stock”); and

 

WHEREAS, after careful
consideration of the Purchase Agreement, the documents incident thereto and other factors deemed relevant by the Board of Directors,
the Board of Directors has determined that it is advisable and in the best interests of the Company to engage in the transactions
contemplated by the Purchase Agreement, including, but not limited to, the issuance to Cobblestone as a commitment fee of such
number of shares of Common Stock that would have a value equivalent to $200,000 calculated using the average of volume weighted
average price for the Common Stock traded during normal trading hours during the three (3) trading days period immediately preceding
the date of issuance of such shares (the “Commitment Shares”) and the issuance and sale of shares of Common
Stock to Cobblestone up to the available amount under the Purchase Agreement (the “Purchase Shares,” and together
with the Commitment Shares, the “Cobblestone Shares”).

 

WHEREAS, in connection
with the transactions contemplated pursuant to the Purchase Agreement, the Company has agreed to file a registration statement
with the Securities and Exchange Commission (the “Commission”) registering the Commitment Shares (as defined
in the Purchase Agreement) and the Purchase Shares (as defined in the Purchase Agreement) and to list the Commitment Shares and
Purchase Shares on the Nasdaq Capital Market;

 

WHEREAS, the management
of the Company has prepared an initial draft of a Registration Statement on Form S-3 (the “Registration Statement”)
in order to register the sale of the Purchase Shares and the Commitment Shares (collectively, the “Securities”)
by Cobblestone; and

 

WHEREAS, the Board of Directors
has determined to approve the Registration Statement and to authorize the appropriate officers of the Company to take all such
actions as they may deem appropriate to effect the offering.

 

Transaction Documents

 

NOW, THEREFORE, BE IT RESOLVED,
that the transactions described in the Purchase Agreement are hereby approved and the Chief Executive Officer, Chief Legal Officer
and Chief Financial Officer (the “Authorized Officers”) are severally authorized to execute and deliver the
Purchase Agreement, and any other agreements or documents contemplated thereby including, without limitation, a registration rights
agreement (the “Registration Rights Agreement”) providing for the registration of the shares of the Company’s
Common Stock issuable in respect of the Purchase Agreement on behalf of Cobblestone, with such amendments, changes, additions and
deletions as the Authorized Officers may deem to be appropriate and approve on behalf of, the Company, such approval to be conclusively
evidenced by the signature of an Authorized Officer thereon; and

 

     

     

    

 

FURTHER RESOLVED, that
the terms and provisions of the Registration Rights Agreement by and among the Company and Cobblestone are hereby approved and
the Authorized Officers are authorized to execute and deliver the Registration Rights Agreement (pursuant to the terms of the Purchase
Agreement), with such amendments, changes, additions and deletions as the Authorized Officer may deem appropriate and approve on
behalf of, the Company, such approval to be conclusively evidenced by the signature of an Authorized Officer thereon; and

 

FURTHER RESOLVED, that
the Authorized Officers are authorized to execute and deliver the transfer agent instructions pursuant to the terms of the Purchase
Agreement, with such amendments, changes, additions and deletions as the Authorized Officers may deem appropriate and approve on
behalf of, the Company, such approval to be conclusively evidenced by the signature of an Authorized Officer thereon; and

 

Execution of Purchase Agreement

 

FURTHER RESOLVED, that
the Company be and it hereby is authorized to execute the Purchase Agreement providing for the purchase of common stock of the
Company having an aggregate value of up to $10,000,000; and

 

Issuance of Common Stock

 

FURTHER RESOLVED, that
the Company is hereby authorized to issue the Commitment Shares to Cobblestone as Commitment Shares and that upon issuance
of the Commitment Shares pursuant to the Purchase Agreement, the Commitment Shares shall be duly authorized, validly issued, fully
paid and non-assessable; and

 

FURTHER RESOLVED, that
the Company is hereby authorized to issue shares of Common Stock upon the purchase of Purchase Shares up to the available amount
under the Purchase Agreement in accordance with the terms of the Purchase Agreement and that, upon issuance of the Purchase Shares
pursuant to the Purchase Agreement, the Purchase Shares will be duly authorized, validly issued, fully paid and non-assessable;
and

 

FURTHER RESOLVED, that
the Corporation shall initially reserve 20,000,000 shares of Common Stock for issuance as Purchase Shares under the Purchase Agreement;
and 

 

Listing of Shares on the Nasdaq Capital Market

 

FURTHER RESOLVED, that
the officers of the Company be, and each of them hereby is, authorized and directed to take all necessary steps and do all other
things necessary and appropriate to effect the listing of the Cobblestone Shares on the Nasdaq Capital Market; and

 

Approval of Registration Statement

 

RESOLVED, that the officers
and directors of the Company be, and each of them hereby is, authorized and directed to prepare, execute and file with the Commission
the Registration Statement, which Registration Statement shall be filed substantially in the form presented to the Board of Directors,
with such changes therein as the Chief Executive Officer, Chief Legal Officer or Chief Financial Officer of the Company shall deem
desirable and in the best interest of the Company and its stockholders (such officer’s execution thereof including such changes
shall be deemed to evidence conclusively such determination); and

 

FURTHER RESOLVED, that
the officers of the Company be, and each of them hereby is, authorized and directed to prepare, execute and file with the Commission
all amendments, including post-effective amendments, and supplements to the Registration Statement, and all certificates, exhibits,
schedules, documents and other instruments relating to the Registration Statement, as such officers shall deem necessary or appropriate
(such officer’s execution and filing thereof shall be deemed to evidence conclusively such determination); and

 

     

     

    

 

FURTHER RESOLVED, that
the execution of the Registration Statement and of any amendments and supplements thereto by the officers of the Company be, and
the same hereby is, specifically authorized either personally or by the Authorized Officers as such officer’s true and lawful
attorneys-in-fact and agents; and

 

FURTHER RESOLVED, that
the officers of the Company be, and each of them hereby is, authorized and directed to cause the Company to pay all fees, costs
and expenses that may be incurred by the Company in connection with the Registration Statement; and

 

FURTHER RESOLVED, that
it is desirable and in the best interest of the Company that the Securities be qualified or registered for sale in various states;
that the officers of the Company be, and each of them hereby is, authorized to determine the states in which appropriate action
shall be taken to qualify or register for sale all or such part of the Securities as they may deem advisable; that said officers
be, and each of them hereby is, authorized to perform on behalf of the Company any and all such acts as they may deem necessary
or advisable in order to comply with the applicable laws of any such states, and in connection therewith to execute and file all
requisite papers and documents, including, but not limited to, applications, reports, surety bonds, irrevocable consents, appointments
of attorneys for service of process and resolutions; and the execution by such officers of any such paper or document or the doing
by them of any act in connection with the foregoing matters shall conclusively establish their authority therefor from the Company
and the approval and ratification by the Company of the papers and documents so executed and the actions so taken; and

 

FURTHER RESOLVED, that
if, in any state where the securities to be registered or qualified for sale to the public, or where the Company is to be registered
in connection with the public offering of the Securities, a prescribed form of resolution or resolutions is required to be adopted
by the Board of Directors, each such resolution shall be deemed to have been and hereby is adopted, and the Secretary is hereby
authorized to certify the adoption of all such resolutions as though such resolutions were now presented to and adopted by the
Board of Directors; and

 

Approval of Actions

 

FURTHER RESOLVED, that,
without limiting the foregoing, the Authorized Officers are, and each of them hereby is, authorized and directed to proceed on
behalf of the Company and to take all such steps as deemed necessary or appropriate to cause the Company to consummate the agreements
referred to herein and to perform its obligations under such agreements;

 

FURTHER RESOLVED, that
the Authorized Officers be, and each of them hereby is, authorized, empowered and directed on behalf of and in the name of the
Company, to take or cause to be taken all such further actions and to execute and deliver or cause to be executed and delivered
all such further agreements, amendments, documents, certificates, reports, schedules, applications, notices, letters and undertakings
and to incur and pay all such fees and expenses as in their judgment shall be necessary, proper or desirable to carry into effect
the purpose and intent of any and all of the foregoing resolutions, and that all actions heretofore taken by any officer or director
of the Company in connection with the transactions contemplated by the agreements described herein are hereby approved, ratified
and confirmed in all respects; and

 

FURTHER RESOLVED, that
any and all actions heretofore or hereinafter taken on behalf of the Company by any of said persons or entities within the terms
of the foregoing resolutions are hereby approved, ratified and confirmed in all respects as the acts and deeds of the Company.

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