Document:

EX-10.1

 Exhibit 10.1 
  

 
 INTERIM SERVICES AGREEMENT 

This INTERIM SERVICES AGREEMENT (this “Agreement”), entered into as of the 15th day of October, 2015, is by and between
RANDSTAD PROFESSIONALS US, LP, d/b/a Tatum, a Delaware limited partnership, with offices at 150 Presidential Way, 3rd Floor, Woburn, Massachusetts 01801
(“Tatum”), and Marvell Technology Group, Ltd., with offices at 54988 Marvell Lane, Santa Clara CA 95054 (the “Company”). A “Party” shall mean either Tatum or the Company, as the case may be;
the “Parties” shall mean Tatum and the Company, collectively. 
 WHEREAS, the Company desires to engage Tatum to perform
certain outsourced interim services; and, Tatum is willing to provide the services of its personnel to perform such tasks subject to the terms and conditions hereof. 

NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt of which
is hereby acknowledged, Tatum and the Company agree as follows: 
 1. Services. The services (the “Services”) and fees will
be more particularly described on the Schedule attached hereto and will be provided by the individual professional (the “Tatum Professional”) identified on such Schedule. Schedules for additional Tatum Professionals may be added
from time to time upon the mutual written agreement of the Parties. In addition, upon the request of the Company and the execution of an additional Schedule to this Agreement, Tatum will provide search Services to the Company, all as more
particularly described on such Schedule. 
 2. Engagement. The Tatum Professional will be one of Tatum’s professionals, and Tatum will be
solely responsible for determining the conditions, terms and payment of compensation and benefits for the Tatum Professional. The Company will be solely responsible for providing the Tatum Professional day-to-day guidance, supervision, direction,
assistance and other information necessary for the successful and timely completion of the Services. Tatum will have no oversight, control, or authority over the Tatum Professional with respect to the Services. The Company acknowledges that it is
solely responsible for the sufficiency of the Services for its purposes. The Company will designate a management-level individual to be responsible for overseeing the Services, and the Tatum Professional will report directly to such individual with
respect to the provision of the Services. Unless the Tatum Professional is acting as an executive officer of the Company and is authorized by the Company to make such decision, the Company will not permit or require the Tatum Professional to be the
ultimate decision making authority for any material decision relating to the Company’s business, including, without limitation, any proposed merger, acquisition, recapitalization, financial strategy or restructuring. 

Reference is hereby made to that certain Marvell Temporary CFO (TCFO) Overview of Marvell Expectations document that has been provided to Tatum by the Company
(the “Expectations Document”). The parties agree that the Expectations Document is intended to clarify goals and expectations, but in no way represents a representation, warranty, guarantee or covenant of Tatum or the Tatum
Professional. 
 3. Fees and Expenses. The Company will pay Tatum the fees set forth on the applicable Schedule. In addition, the Company will
reimburse Tatum directly for all travel and out-of-pocket expenses incurred in connection with this Agreement (including any Schedules). Tatum shall invoice the Company for, and the Company shall pay to Tatum for further remittance to the
appropriate taxing authorities, any sales or use taxes applicable to the Services. If the Company claims that it is exempt from any such sales or use taxes, then the Company must provide Tatum with an exemption certificate satisfactory to Tatum.

 4. Payment Terms. Payments to Tatum should be made within 30 days of receipt of invoice by electronic transfer in accordance with
the instructions set forth below or such alternative instructions as provided by Tatum from time to time. Any amounts not paid when due may be subject to a periodic service charge equal to the lesser of 1.5% per month and the maximum amount
allowed under applicable law, until such amounts are paid in full, including assessed service charges. In lieu of terminating this Agreement, Tatum may suspend the provision of any Services if amounts owed are not paid in accordance with the terms
of this Agreement. 

  

					
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 Bank Name and Address: Bank of America, 1950 N Stemmons Freeway, Suite 5010, Dallas, TX 75207

 Beneficiary: Tatum 

Beneficiary Account Number: 
 ABA
Transit/Routing Number: 
 Please reference the Company’s name in the body of the payment. 

5. Effective Date and Termination. This Agreement will be effective as of the earlier of (i) the date Tatum begins providing Services to
the Company, and (ii) the date of the last signature to this Agreement as indicated on the signature page. In the event that a Party commits a breach of this Agreement (including any Schedule) and fails to cure the same within 10 days following
delivery by the non-breaching Party of written notice specifying the nature of the breach, the non-breaching Party may terminate this Agreement or the applicable Schedule effective upon written notice of such termination. The termination rights set
forth in this Section are in addition to and not in lieu of the termination rights set forth in each of the Schedules. 
 6. Hiring the Tatum
Professional Outside of a Tatum Agreement. If, at any time during the time frame in which a Tatum Professional is providing Services to the Company and for a period of 12-months thereafter, other than in connection with this Agreement or
another Tatum agreement, the Company or any of its subsidiaries or affiliates employs such Tatum Professional, or engages such Tatum Professional as an independent contractor, the Company will pay Tatum a placement fee in an amount equal to 35% of
the Annualized Compensation (as defined below). “Annualized Compensation” is defined as salary, incentive, signing and other bonuses, equity compensation, and any other compensation that may be earned by the Tatum Professional
during the first 12 months of service with the Company (or its subsidiary or affiliate) regardless of when or if such compensation is actually paid. The placement fee shall be due upon the commencement of the Tatum Professional’s employment or
engagement with the Company (or its subsidiary or affiliate).  
 7. Warranties and Disclaimers. TATUM DISCLAIMS ALL REPRESENTATIONS AND
WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF QUALITY, PERFORMANCE, MERCHANTABILITY, OR FITNESS OF USE OR PURPOSE. WITHOUT LIMITING THE FOREGOING, TATUM MAKES NO REPRESENTATION OR WARRANTY WITH
RESPECT TO THE TATUM PROFESSIONAL OR THE SERVICES PROVIDED HEREUNDER, AND TATUM WILL NOT BE RESPONSIBLE FOR ANY ACTION TAKEN BY THE COMPANY IN FOLLOWING OR DECLINING TO FOLLOW ANY OF THE TATUM PROFESSIONAL’S ADVICE OR RECOMMENDATIONS. THE
SERVICES PROVIDED BY TATUM AND THE TATUM PROFESSIONAL HEREUNDER ARE FOR THE SOLE BENEFIT OF THE COMPANY AND NOT ANY UNNAMED THIRD PARTIES. THE SERVICES WILL NOT CONSTITUTE AN AUDIT, REVIEW, OPINION, OR COMPILATION, OR ANY OTHER TYPE OF FINANCIAL
STATEMENT REPORTING OR ATTESTATION ENGAGEMENT THAT IS SUBJECT TO THE RULES OF THE AICPA OR OTHER SIMILAR STATE OR NATIONAL PROFESSIONAL BODIES OR LAWS AND WILL NOT RESULT IN AN OPINION OR ANY FORM OF ASSURANCE ON INTERNAL CONTROLS. 

8. Limitation of Liability; Indemnity. 

(a) TATUM’S LIABILITY IN ANY AND ALL CATEGORIES AND FOR ANY AND ALL CAUSES ARISING UNDER THIS AGREEMENT, WHETHER BASED IN CONTRACT,
TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, WILL, IN THE AGGREGATE, NOT EXCEED THE ACTUAL FEES PAID BY THE COMPANY TO TATUM OVER THE PREVIOUS TWO MONTHS OF THIS AGREEMENT WITH RESPECT TO THE TATUM PROFESSIONAL FROM WHOM THE LIABILITY ARISES. IN
NO EVENT WILL TATUM BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, PUNITIVE, INDIRECT OR SPECIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, INTERRUPTION OR LOSS OF BUSINESS, PROFIT OR GOODWILL. AS A CONDITION FOR RECOVERY OF ANY LIABILITY, THE COMPANY MUST
ASSERT ANY CLAIM AGAINST TATUM WITHIN THREE MONTHS AFTER DISCOVERY OR 60 DAYS AFTER THE TERMINATION OR EXPIRATION OF THE APPLICABLE SCHEDULE UNDER WHICH THE LIABILITY ARISES, WHICHEVER IS EARLIER. 

  

					
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 (b) THE COMPANY AGREES TO INDEMNIFY TATUM AND THE TATUM PROFESSIONAL TO THE FULL
EXTENT PERMITTED BY LAW FOR ANY LOSSES, COSTS, DAMAGES, AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES), AS THEY ARE INCURRED, IN CONNECTION WITH ANY CAUSE OF ACTION, SUIT, OR OTHER PROCEEDING ARISING IN CONNECTION WITH THE TATUM
PROFESSIONAL’S SERVICES TO THE COMPANY. 
 In addition to the indemnity provided herein, the Company shall enter into an
indemnification agreement directly with any Tatum Professional acting in an officer or director role (including without limitation the role of Interim Chief Financial Officer), such agreement(s) to be substantially in the form filed by the Company
as an exhibit to its Form 8-K filed on October 10, 2008. 
 9. Insurance.  

The Company represents and warrants to Tatum that the Company currently maintains directors and officers insurance covering the Tatum Professional in an
amount reasonably acceptable to Tatum at no additional cost to Tatum or the Tatum Professional. The Company shall maintain such insurance at all times while this Agreement remains in effect. Furthermore, the Company will maintain such insurance
coverage with respect to occurrences arising during the term of this Agreement for at least five years following the termination or expiration of the applicable Schedule or will purchase a directors’ and officers’ extended reporting period
or “tail” policy to cover the Tatum Professional for such five year time period. The Company’s directors and officers insurance must be primary and non-contributory. Upon the execution of this Agreement and at any other time requested
by Tatum, the Company will provide Tatum a certificate of insurance evidencing that the Company is in compliance with the requirements of this Section with a note in the Description of Operations section of the certificate indicating that the
coverage is extended to the Tatum Professional. 
 Change in Company Circumstances. In the event that the Company’s financial condition
or liquidity significantly deteriorates or the Company enters into discussions with restructuring or bankruptcy advisors, Tatum and the Company will review the current fee structure and payment terms under this Agreement (including any Schedule) and
agree on appropriate modifications. In addition, Tatum and the Company will discuss the need for additional Tatum professionals with specialized skills in working with companies undergoing significant debt and equity restructuring, and as needed,
Tatum professionals with experience helping companies seeking or operating under bankruptcy protection. The agreed upon additional professionals will be engaged under terms and fees commensurate to the expertise and services to be provided. In the
event that Tatum and the Company cannot agree on appropriate modifications to this Agreement (including any Schedule) or the need for additional Tatum professionals, Tatum may immediately terminate this Agreement or any Schedule upon notice to the
Company. 
 10. Governing Law, Arbitration and Witness Fees. 

(a) This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to
conflicts of laws provisions. 
 (b) If the Parties are unable to resolve any dispute arising out of or in connection with this Agreement,
the Parties agree and stipulate that any such disputes will be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”). The arbitration will be conducted in
the San Francisco, California office of the AAA by a single arbitrator selected by the Parties according to the rules of the AAA, and the decision of the arbitrator will be final and binding on both Parties. In the event that the Parties fail to
agree on the selection of the arbitrator within 30 days after either Party’s request for arbitration under this Section, the arbitrator will be chosen by the AAA. The arbitrator may in his or her discretion order documentary discovery but will
not allow depositions without a showing of compelling need. The arbitrator will render his or her decision within 90 days after the call for arbitration. Judgment on the award of the arbitrator may be entered in and enforced by any court of
competent jurisdiction. The arbitrator will have no authority to award damages in excess or in contravention of this Agreement and may not amend or disregard any provision of this Agreement, including this Section. Notwithstanding the foregoing,
either Party may seek appropriate injunctive relief from any court of competent jurisdiction, and Tatum may pursue payment of any unpaid amounts due under this Agreement through any court of competent jurisdiction. 

(c) In the event any professional of Tatum (including, without limitation, any Tatum Professional) is requested or authorized by the Company
or is required by government regulation, subpoena, or other legal process to produce documents or appear as witnesses in connection with any action, suit or other proceeding initiated by a third party against the Company or by the Company against a
third party, the Company will, so long as Tatum is not a party 

  

					
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to the proceeding in which the information is sought, reimburse Tatum for its professional’s time (based on customary rates) and expenses, as well as the fees and expenses of its counsel,
incurred in responding to such requests. This provision is in addition to and not in lieu of any indemnification obligations the Company may have under this Agreement. 

11. Miscellaneous. 
 (a) This
Agreement together with all Schedules constitutes the entire agreement between the Parties with regard to the subject matter hereof and supersedes any and all agreements, whether oral or written, between the Parties with respect to its subject
matter. No amendment or modification to this Agreement will be valid unless in writing and signed by both Parties. 
 (b) If any portion of
this Agreement is found to be invalid or unenforceable, such provision will be deemed severable from the remainder of this Agreement and will not cause the invalidity or unenforceability of the remainder of this Agreement, except to the extent that
the severed provision deprives either Party of a substantial portion of its bargain. 
 (c) Neither Party will be deemed to have waived any
rights or remedies accruing under this Agreement unless such waiver is in writing and signed by the Party electing to waive the right or remedy. The waiver by any Party of a breach or violation of any provision of this Agreement will not operate or
be construed as a waiver of any subsequent breach of such provision or any other provision of this Agreement. 
 (d) Neither Party will be
liable for any delay or failure to perform under this Agreement (other than with respect to payment obligations) to the extent such delay or failure is a result of an act of God, war, earthquake, civil disobedience, court order, labor dispute, or
other cause beyond such Party’s reasonable control. 
 (e) The Company may not assign its rights or obligations under this Agreement
without the express written consent of Tatum. Tatum shall be entitled (without the consent of the Company) to transfer this Agreement and/or assign its obligations, rights and benefits in this Agreement to a third party. Nothing in this Agreement
will confer any rights upon any person or entity other than the parties hereto and their respective successors and permitted assigns and the Tatum Professionals. 

(f) The expiration or termination of this Agreement or any Schedule will not destroy or diminish the binding force and effect of any of the
provisions of this Agreement or any Schedule that expressly, or by reasonable implication, come into or continue in effect on or after such expiration or termination, including, without limitation, provisions relating to payment of fees and expenses
(including witness fees and expenses), hiring the Tatum Professionals, governing law, arbitration, limitation of liability and indemnity. 

(g) The Company agrees to reimburse Tatum for all costs and expenses (including, without limitation, reasonable attorneys’ fees, court
costs and arbitration fees) incurred by Tatum in enforcing collection of any monies due under this Agreement. 
 (h) The Company agrees to
allow Tatum to use the Company’s logo and name on Tatum’s website and other marketing materials for the sole purpose of identifying the Company as a client of Tatum. Tatum will not use the Company’s logo or name in any press release
or general circulation advertisement without the Company’s prior written consent. 
 (i) This Agreement is applicable only to the Tatum
division of Randstad Professionals US, LP, and is not intended to apply to any other division of Randstad Professionals US, LP. 

(j) Tatum agrees to comply with all provisions of the Patient Protection and Affordable Care Act (“ACA”) applicable to its
Tatum Professional(s) employed by Tatum, including the employer shared responsibility provisions relating to the offer of “minimum essential coverage” to “full-time employees” and their “dependents” (as those terms are
defined in Internal Revenue Code Section 4980H and related regulations) and the applicable information reporting provisions under Internal Revenue Code Section 6055 and 6056 and related regulations. This paragraph is intended by the
parties as the full and complete expression of Tatum’s ACA obligations under this Agreement, and the ACA shall not be deemed within the scope of any other more general provision of this Agreement. 

  

					
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized
representatives as of the dates set forth below. 
  

									
	RANDSTAD PROFESSIONALS US, LP,	 		 	MARVELL TECHNOLOGY GROUP LTD.:
	d/b/a TATUM:	 		 		 	
					
	 By: 
	 	 /s/ Henry G. Hilbert
	 		 	By: 	 	 /s/ William Valle

	 Name: Henry G. Hilbert
	 		 	Name: William Valle
	 Title:   Office Managing Partner
	 		 	Title:   Vice President, Human Resources
	 Date:   October 15, 2015
	 		 	Date:   October 15, 2015

  

					
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 Schedule to Interim Services Agreement 

This Schedule is entered into in connection with that certain Interim Services Agreement, dated October 15, 2015 (the
“Agreement”), by and between Randstad Professionals US, LP, d/b/a Tatum (“Tatum”) and MARVELL TECHNOLOGY GROUP LTD. (the “Company”) and will be governed by the terms and conditions of
the Agreement. 
 1. Tatum Professional Name: David P. Eichler 

2. Service Description or Position: Interim Chief Financial Officer 

If the Company elects or appoints the Tatum Professional to the Company’s Board of Directors, Operating Committee or other similar governing body
(collectively, “Board Services”), the Tatum Professional will provide the Board Services in his individual capacity and not as a professional of Tatum. For the avoidance of doubt, Tatum is not providing any Board Services to the
Company, and Tatum will not be responsible for any actions or omissions of the Tatum Professional for Board Services. 
 3. Company Supervisor: Sehat
Sutardja, Chairman and Chief Executive Officer 
 4. Start Date: October 16, 2015 

5. Minimum Term: Three months 
 6. Termination:

 (a) After the expiration of any minimum term set forth above, either Party may terminate this Schedule by providing the other Party a
minimum of 15 days’ advance written notice and such termination will be effective as of the date specified in such notice, provided that such date is no earlier than 15 days after the date of delivery of the notice. Tatum will continue to
provide, and the Company will continue to pay for, the Services until the termination effective date. 
 (b) Tatum may terminate this
Schedule immediately upon written notice to the Company if: (i) the Company is engaged in or asks Tatum or any Tatum Professional to engage in or ignore any illegal or unethical activity; (ii) the Tatum Professional ceases to be a
professional of Tatum for any reason; (iii) the Tatum Professional becomes disabled; or (iv) the Company fails to pay any amounts due to Tatum under the Agreement when due. For purposes of the Agreement, disability will be defined by the
applicable policy of disability insurance or, in the absence of such insurance, by Tatum’s management acting in good faith. Notwithstanding the foregoing, in lieu of terminating this Schedule under (ii) and (iii) above, upon the
mutual agreement of the Parties, the Tatum Professional may be replaced by another Tatum professional. 
 (c) The termination rights set
forth in this section are in addition to and not in lieu of the termination rights set forth in the Agreement. 
 7. Fees: Except as otherwise set
forth below, the Company will pay to Tatum a fee of $15,000 a week for the Tatum Professional. The weekly fee includes allowance for holidays, personal and sick days, and vacation for the Tatum Professional consistent with the Company’s
policy as it applies to similarly situated employees of the Company. 
 In addition, for all hours worked by any Tatum Professional who is categorized as
“exempt” (as classified by state and federal guidelines) in a week over 60 hours, the Company will pay Tatum for those hours a rate equal to $325. 

The Parties acknowledge and agree that the fees set forth above are based upon this Schedule having the Minimum Term set forth above. In the event the Company
terminates this Schedule prior to the expiration of the Minimum Term other than for the Tatum Professional’s material failure to perform the obligations of his or her position with the Company, provided the Tatum Professional fails to cure such
breach within 10 days after receipt of written notice of such breach, the Company agrees to pay to Tatum upon the termination of this Schedule a lump sum amount equal to the difference between the fees actually paid and the fees that should have
been paid taking into account the Minimum Term. 

  

					
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 In addition, the Company will pay Tatum a fee of $250 an hour for time incurred in connection with
this Schedule by a member of Tatum’s leadership team for resource coordination, attending meetings with Company personnel, assisting the Tatum Professional with the Company’s issues, and other matters requiring the assistance of Tatum
leadership. 
 The fees set forth in this Schedule will automatically increase on an annual basis commencing with the first anniversary of this Schedule in
an amount equal to 6% per year. 
 8. Billings: Tatum will bill for Services weekly in arrears. 

As a condition to providing the Services, Tatum requires a security deposit in the amount equal to $75,000 (the “Deposit”), which is
due upon execution of this Schedule. If the Company breaches the Agreement (including any Schedule) or any other agreement between the Company and Tatum or any Tatum professional and fails to cure such breach as provided for herein or therein, Tatum
will be entitled to apply the Deposit to its or the Tatum professional’s damages resulting from such breach. In the event the Deposit falls below the amount required, the Company will pay Tatum an additional amount equal to the shortfall. Upon
the expiration or termination of the Agreement, Tatum will return to the Company the balance of the Deposit remaining under the Agreement after application of any amounts to damages as provided for herein, including, without limitation, the
Company’s unfulfilled payment obligations of the Company to Tatum or any Tatum professional. 
 In the event of a conflict between the terms and
conditions of this Schedule and the Agreement, the terms and conditions of the Agreement will control. 

  

					
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	RANDSTAD PROFESSIONALS US, LP,	 		 	MARVELL TECHNOLOGY GROUP LTD.:
	d/b/a TATUM:	 		 		 	
					
	By: 	 	 /s/ Henry G. Hilbert
	 		 	By: 	 	 /s/ William Valle

	Name: Henry G. Hilbert	 		 	Name: William Valle
	Title:   Office Managing Partner	 		 	Title:   Vice President, Human Resources
	Date:   October 15, 2015	 		 	Date:   October 15, 2015

  

					
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 8Exhibit 10.1

 

 

 

 

PRIVATE & CONFIDENTIAL

  

July 21, 2016

 

Paystar, Inc. a Delaware Corp

and its wholly-owned subsidiary

Nexcharge, Inc. a Nevada Corp

Attn: Christopher Berlandier, CEO

Delivered via email: chris.berlandier@paystar.net

  

BINDING LETTER OF INTENT

 

Dear Mr. Berlandier:

 

Net Element, Inc.,
either directly or through any of its assignees and/or other affiliates (“NETE”) is pleased to provide
this binding letter of intent (“LOI”) to establish a joint venture (“JV”) with
Paystar, Inc. (“Paystar”) and Nexcharge, Inc. (“Nexcharge”). Paystar and Nexcharge
are collectively hereafter referred to as the “Company” and NETE and the Company are collectively referred
to as the “Parties”. The Parties will establish a new entity (“Newco”) for
the operation of JV. The Company will contribute its assets into Newco in return for consideration from NETE of up to $3,390,000
as more fully detailed below. The creation of the JV; establishment of Newco; contribution by the Company of its assets to
Newco; and the consideration payable by NETE on the terms and conditions referenced below are hereafter collectively referred to
as the “Transaction”.

 

The consummation of
the Transaction is subject to, among other things (i) the completion of due diligence of the Company and its business interests
satisfactory to NETE in their sole discretion, (ii) approval by the Board of NETE, and (iii) the execution of definitive legal
documentation acceptable to NETE and the Company (“Transaction Documents”).

 

SUMMARY OF TERMS

 

This LOI supersedes all prior verbal and
written discussions, proposals and term sheets. This LOI is an expression of NETE’s interest in pursuing a transaction on
the terms described herein.

 

	NETE:	
        Net Element, Inc., a Delaware
corporation or any of its affiliates or assignees. 

	 	 
	Owner(s):	
        The owner(s) of the ownership
interests of Paystar and Nexcharge. 

 

    
		Net Element, Inc. 1

 

     

    

 

	Contibution:	The
        Company will contribute all of its assets to Newco. All assets contributed shall be free of liens or other encumbrances
        and at the closing date, Newco shall be free of all liabilities, whether short term or long term, except for those agreed
        to by the Parties after Due Diligence by NETE referred to below. 

	 	 
	Consideration:	The total consideration payable
    by NETE for the Contribution shall be as follows:

 

Nexcharge Division:

		·	NETE will provide the Nexcharge division of Newco funding
mechanisms, whether in cash, cash equivalents or otherwise up to the below mentioned amounts, for the specific purposes outlined
below:

 

		o	Setup Expenses:

		§	Between $100,000 and $250,000 for Bank reserves for the
setup of a payment processing platform;

		§	Up to $25,000 – for American Express reserves.

 

		o	Capital Expenditure:

		§	Up to $100,000 for approved equipment purchases;

		§	$20,000 for compliance related matters;

		§	$20,000 for Visa / MasterCard MIP / DEX fees;

		§	Between $100,000 and $150,000 for development costs to
finish current and outstanding development sprints

 

		o	G&A Budget:

		§	Up to $50,000 per month for the next 12 months for approved
budget line items per an approved pro-forma plan.

 

Paystar Division:

		·	NETE will provide the Paystar division of Newco as follows:

 

		o	G&A Budget for approved budget line items per an
approved pro-forma plan as follows:

		§	Up to $75,000 for the first month;

		§	Up to $50,000 per month for the next 10 months;

		§	Up to $25,000 for the 12th month.

  

    
		Net Element, Inc. 2

 

     

    

 

EBITDA Compensation:

		·	Upon achievement of an agreed EBTIDA milestone for Newco
for the first year post Closing, Owners shall receive compensation of $250,000 (“Milestone 1”);

		·	Upon achievement of an agreed EBITDA milestone for Newco
for the second year post Closing, Owners shall receive additional compensation of $500,000 (“Milestone 2”);

		·	Upon achievement of an agreed EBITDA milestone for Newco
for the third year post Closing, Owners shall receive additional compensation of $750,000 (“Milestone 3”).

 

Christopher Berlandier:

		·	Upon Closing of the Transaction, Christopher Berlandier
shall receive 15,000 shares of NETE stock issued pursuant to Rule 144 of the Securities Regulations. In addition, Mr. Berlandier
shall be eligible for $100,000 worth of NETE stock as an incentive for non-EBITDA related milestones in Newco, to be identified
before Closing;

		·	Upon a “Liquidation Event”
of Newco (as defined in the definitive Transaction documents), in the event of the “Liquidation Milestones”
as defined in the Transaction documents being satisfied, Christopher Berlandier shall be entitled to a preferred payout of $750,000.

 

Executive Management:

		·	Post Closing of the Transaction, the executive management
team of Newco shall be eligible for equity participation incentives in Newco as well as stock options and/or stock grant awards
through participation in NETE’s stock incentive plan. Details of such participation shall be outlined in the definitive
Transaction Documents. NETE agrees to work in good faith with the Owners to determine the parties eligible for equity participation
and the incentive amounts to be made available.

 

	 	NETE acknowledges that to the extent necessary
        to meet its financial commitments outlined above, it will utilize available funding from its credit facility with RBL Capital Group,
        LLC.
	 	 
	Newco Structure:

	It is contemplated that Newco will have 2 classes of shares:

 

		(a)	Class A Shares, which will have all the usual rights,
votes and obligations associated therewith; and

		(b)	Class B Shares, which shall be non-voting shares reserved
for executives and employees.

 

    
		Net Element, Inc. 3

 

     

    

 

		·	Class A Shares in Newco shall be owned as follows:

		o	NETE – 51%; and

		o	Owners – 49%

 

		·	Class B Shares in Newco shall be reserved for
executive and employee compensation.

 

	 	The Parties agree that each will apply
        good faith and use their best efforts to formulate a structure for the Transaction that is acceptable to each of the parties and
        which is designed to:

 

		·	Comply with all necessary legal and regulatory requirements;

		·	Minimize or eliminate any adverse tax consequences to
the Parties; and

		·	Be as cost effective as possible.

 

	 	Notwithstanding the ultimate deal structure,
the underlying deal terms for the Transaction set forth herein shall apply.

 

During the first year of operations, the Parties will determine if its in their interests to convert their
stock in Newco to stock of Net Element, Inc. and if so, the Parties will work in good faith to seek the necessary approvals from
Net Element, Inc.

 

	Option to Purchase:	
        NETE shall have the irrevocable
sole and exclusive option to purchase (“Option”) from the Owners, their 49% Class A Shares ownership
interests in Newco (“Remainder Interests”). The Option shall be for 12 months from the closing of the
Transaction and the purchase price payable for the Remainder Interests shall be agreed to by the parties at fair market value
when Option is considered. 

	 	 
	Broker Fee:	
        The Parties agree that in the
event of the Closing of the Transaction, the Owners and NETE will pay in equal 50-50 proportions, a broker’s fee to Ed Slominski
in the sum of up to $170,000 of consideration. NETE may at its sole and exclusive option pay its share of the brokers fee by issuance
to the Slominski of NETE stock. 

	 	 
	Due Diligence:	
        We consider Due Diligence as an
important process of obtaining the information required to verify information previously provided by the Company and for preparation
of the Transaction Documents. Prior to signing definitive Transaction documents, we will require the opportunity to perform detailed
due diligence investigation of the Company and its affiliates. Such due diligence shall include, but shall not be limited to: 

 

    
		Net Element, Inc. 4

 

     

    

 

		·	a detailed financial and accounting review, including
a quality of earnings analysis;

		·	a detailed review of all operating information, sales
processes and pipeline;

		·	reference discussions with key suppliers and customers;

		·	personal and professional background checks on the Owners
and all key members of management;

		·	an assessment of the Company’s information and
technology infrastructure, including a PCI compliance and data security audit;

		·	a review of human resources matters, employee benefits,
insurance, legal, intellectual property, corporate administration, tax and environmental information.

 

	 	In addition, we anticipate a detailed due diligence review by our legal, tax, financial, technology and business advisors
that would be completed contemporaneously as part of our overall due diligence process. It is assumed that the information
to be provided by the Company will be accurate in all respects and will represent the true current state of the Company.

 

	Costs and Expenses:	
        Each Party shall be liable for
all of its own costs and expenses in relation to this binding letter of intent, the Transaction Documents and all other matters
pertaining to the Transaction. 

	 	 
	Applicable Law and Jurisdiction:	
        This binding letter of intent
and all disputes or claims arising out of or in connection with the Transactions contemplated hereunder or their subject matter
will be governed by the laws of the State of Florida without giving effect to any choice or conflict of law provision or rule
(whether of the State of Florida or any other jurisdiction) that would cause the application of the laws of any jurisdiction other
than those of the State of Florida. The parties irrevocably agree that they will use good faith and best efforts to resolve any
dispute or claim that arises out of or in connection with this Letter of Intent or its subject matter in amicable way and via
good will negotiations; provided, however, that, if the parties cannot so settle, then the United States District Court for the
Southern District of Florida shall have exclusive jurisdiction to settle any such dispute of claim. 

	 	 
	Approvals:	
        This binding letter of intent
as well as any other documents or agreements to be signed by the Parties shall be subject to the Approval of NETE Board of Directors. 

 

    
		Net Element, Inc. 5

 

     

    

 

	Confidentiality:	
        The parties shall observe Confidentiality
        to the terms of the proposed Transaction and all further negotiations relating hereto.

         

        The binding letter of intent is
strictly confidential and cannot be disclosed by the Parties to any other third parties without NETE’s written permission.
The Parties may disclose the contents of this Proposal to its directors or consultants (including, without limitation, attorneys,
accountants, financial advisers and members of its Supervisory Board), who need to acknowledge this information for the purposes
of the Transaction, assuming that all parties to whom such disclosure is made will maintain the confidentiality of these terms.
Additionally, the Parties will treat all information received from each other in connection with the Transaction as confidential. 

	 	 
	Exclusivity:	
        Immediately upon signing of this
binding letter of intent, the Owners and the Company shall terminate or procure termination of any third party negotiations relating
to the sale of any interest in the Company or any subject matter referenced in this Letter of Intent. 

	 	 
	General:	
        This binding letter of intent remains valid
        for your review and consideration for seven (7) days from the date of its signing by NETE. Upon signature by you, the Letter of
        Intent shall constitute a legally binding document between the Parties subject to the terms referenced herein.

         

        These basic terms and conditions are not
        comprehensive and we expect that additional terms including warranties and representations in line with accepted market practices
        and satisfactory to the NETE, will be incorporated into a formal Acquisition Agreement and certain other agreements to be negotiated
        between the Parties hereto.

         

        The binding letter of intent supersedes
all previous agreements, arrangements and communication relating to the Transaction. None of the terms hereof may be modified
or amended except by a written agreement signed by all parties hereto. 

 

[Signatures provided on the next page]

 

    
		Net Element, Inc. 6

 

     

    

 

Letter of Intent Signature Page

 

If the foregoing accurately
sets forth our agreement with respect to the transactions contemplated, please execute and return one copy of this letter to the
undersigned prior to the close of business on July 21, 2016 at which time, if not sooner accepted, this LOI will expire and thereafter
be of no further force or effect.

 

	NET ELEMENT, INC.	 	PAYSTAR, INC.
	 	 	 
	/s/ Oleg Firer	 	/s/ Christopher Berlandier
	By its Chief Executive Officer	 	By its duly authorized representative
	Oleg Firer	 	Christopher Berlandier
	July 21, 2016	 	July 21, 2016
	 	 	 
	 	 	 
	Christopher Berlandier	 	NEXCHARGE, INC. 
	 	 	 
	/s/ Christopher Berlandier	 	/s/ Christopher Berlandier
	July 21, 2016	 	By its duly authorized representative
		 	Christopher Berlandier
		 	July 21, 2016

 

    
		Net Element, Inc. 7

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