Document:

Exhibit 10.5

 

QPAGOS CORPORATION

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of May __, 2015, by and between QPAGOS
Corporation, a Delaware corporation (the “Company”), and the investors set forth on the signature pages affixed
hereto (each, an “Investor” and, collectively, the “Investors”).

 

WHEREAS, subject
to the terms and conditions set forth in this Agreement and pursuant to exemptions from registration under the Securities Act (as
defined below), the Company desires to issue and sell to each Investor, and each Investor, severally and not jointly, desires to
purchase from the Company, a minimum of 400,000 Units (the “Units”) (aggregate gross proceeds of $500,000) up
to a maximum of an aggregate of 4,000,000 Units (aggregate gross proceeds of $5,000,000), each Unit being offered at a price of
$1.25 per Unit and each Unit consisting of one share of the Company’s common stock, par value $.001 (the “Common
Stock”) and a five year warrant (the “Warrant”) to purchase one share of the Company’s Common
Stock at an exercise price of $1.25 per share (the Shares and the Warrants comprising the Units being hereinafter collectively
referred to as the “Securities”), upon the terms and conditions set forth in this Agreement; and

 

WHEREAS, in
connection with the Investors’ purchase of the Units, the Investors will be subject to certain restrictions on the transfer
of the Securities, all as more fully set forth in this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual terms, conditions and other agreements set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby
agree to the sale and purchase of the Units as set forth herein.

 

1.          Definitions.

 

For purposes of this
Agreement, the terms set forth below shall have the corresponding meanings provided below.

 

“Affiliate”
shall mean, with respect to any specified Person (as defined below), (i) if such Person is an individual, the spouse, heirs, executors,
or legal representatives of such individual, or any trusts for the benefit of such individual or such individual’s spouse
and/or lineal descendants, or (ii) otherwise, another Person that directly, or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, the Person specified. As used in this definition, “control” shall
mean the possession, directly or indirectly, of the sole and unilateral power to cause the direction of the management and policies
of a Person, whether through the ownership of voting securities or by contract or other written instrument.

 

“Business
Day” shall mean any day on which banks located in New York City are not required or authorized by law to remain closed.

 

“Claims”
as defined in Section 5.1 hereof.

 

“Closing”
and “Closing Date” as defined in Section 2.2 (c) hereof.

 

“Common Stock”
as defined in the recitals above.

 

“Company Financial
Statements” as defined in Section 4.5(a) hereof.

 

     

     

    

 

“Company’s
Knowledge” shall mean the actual knowledge of the Chief Executive Officer (as defined in Rule 405 under the Securities
Act).

 

“Company’s
Permits” as defined in Section 4.6 hereof.

 

“Escrow Account,”
“Escrow Agent” and “Escrow Agreement”) shall mean the escrow account established by the Company
with Signature Bank, New York, New York serving as escrow agent, which escrow (as more particularly described in Section 2.3 hereof)
shall be conducted pursuant to the terms of an escrow agreement entered into by the Company, the escrow agent and the Placement
Agent.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“First Closing”
and “First Closing Date” as defined in Section 2.2(a) hereof.

 

“Indemnified
Person” as defined in Section 5.2 hereof.

 

“Intellectual
Property Rights” as defined in Section 4.14 hereof.

 

“Investor
Questionnaire” shall mean the questionnaire required to be completed by all Investors.

 

“Liens”
shall mean any mortgage, lien, title claim, assignment, encumbrance, security interest, adverse claim, contract of sale, restriction
on use or transfer or other defect of title of any kind.

 

“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial
or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole; (ii) the transactions contemplated
hereby or in any of the Transaction Documents; or (iii) the ability of the Company to perform its obligations under the Transaction
Documents (as defined below).

 

“Person”
shall mean an individual, entity, corporation, partnership, association, limited liability company, limited liability partnership,
joint-stock company, trust or unincorporated organization.

 

“Placement
Agent” shall mean Paulson Investment Company, LLC, an Oregon limited liability company.

 

“Purchase
Price” shall mean up to $5,000,000.

 

“Purchaser
Party” as defined in Section 5.1 hereof.

 

“Registrable
Securities” shall mean: (i) the shares of common stock underlying the Units; (ii) any shares of Common Stock issued as
a dividend on the Common Stock; (iii) the Warrant Shares; and (iv) the shares of Common Stock issuable upon exercise of the warrants
issuable to the Placement Agent in partial payment of its services rendered in offering of the Units and theWarrant Shares issuable
upon exercise of the Warrants included in the Units; provided, that a security shall cease to be a Registrable Security
upon (A) sale pursuant to a Registration Statement or Rule 144 under the Securities Act or (B) such security becoming eligible
for sale by the holder thereof without any restriction pursuant to Rule 144 (including, without limitation, volume restrictions)
and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable).

 

“Registration
Rights Agreement” shall mean the agreement to be entered into between the Company and the Investors for filing by the
Company of a registration statement under the Securities Act that covers the resale of any of the Registrable Securities.

 

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“Regulation
D” as defined in Section 3.7 hereof.

 

“Regulation
S” as defined in Section 6.1(e) hereof.

 

“Rule 144”
as defined in Section 6.1(c) hereof.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Subsequent
Closing” and “Subsequent Closing Date” as defined in Section 2.2(b) hereof.

 

“Subsidiaries”
shall mean any corporation or other entity or organization, whether incorporated or unincorporated, in which the Company owns,
directly or indirectly, any equity or other ownership interest or otherwise controls through contract or otherwise.

 

“Transaction
Documents” shall mean this Agreement, the Escrow Agreement and the Registration Rights Agreement.

 

“Units”
as defined in the recitals above.

 

“Warrant”
as defined in the recitals above.

 

“Warrant Shares”
shall mean any shares of Common Stock underlying the Warrants.

 

2.          Sale
and Purchase of Units.

 

2.1.          Subscription
for Units by Investors. Subject to the terms and conditions of this Agreement, on the Closing Date (as hereinafter defined)
each of the Investors shall severally, and not jointly, purchase, and the Company shall sell and issue to the Investors, in exchange
for the portion of the Purchase Price to be paid by each of them, the Units, in the respective amounts set forth on the signature
pages attached hereto.

 

2.2           Closings.

 

(a)          First
Closing. Subject to the terms and conditions set forth in this Agreement, the Company shall issue and sell to each Investor
participating in the First Closing (as defined below), and each such Investor shall, severally and not jointly, purchase from the
Company on the First Closing Date, such number of Units set forth on the signature pages attached hereto(the “First Closing”);
provided, however, that the First Closing shall not occur until subscriptions for gross proceeds of at least $500,000
have been received from Investors by the Company, and such subscription funds shall have been received by the Escrow Agent and
are available for distribution pursuant to joint escrow instructions signed by the Company and the Placement Agent. The date of
the First Closing is hereinafter referred to as the “First Closing Date.” If the minimum amount of $500,000
is raised by July 31, 2015, then the offering will remain open until the earlier of the receipt and acceptance of subscriptions
for $5,000,000 in gross proceeds orSeptember 30, 2015, unless extended an additional 30 days at the election of the Company and
the Placement Agent. If the minimum amount of $500,000 is not raised by July 31, 2015, then the offering will terminate on July
31, 2015, and all funds received in escrow will be returned to the Investors without interest thereon.

 

(b)         Subsequent
Closing(s). The Company agrees to issue and sell to each Investor listed on the Subsequent Closing Schedule of Investors, and
each Investor agrees, severally and not jointly, to purchase from the Company on such Subsequent Closing Date such number of Units
set forth on the signature pages attached hereto (a “Subsequent Closing”). There may be more than one Subsequent
Closing; provided, however, that the last Subsequent Closing shall be held no later than September 30, 2015 (subject
to the right of the Company and the Placement Agent to extend the offering for an additional 30 days without notice to or consent
of the Investors). The date of any Subsequent Closing is hereinafter referred to as a “Subsequent Closing Date.”
Notwithstanding the foregoing, the maximum number of Units to be sold at the First Closing and all Subsequent Closings shall not
exceed 4,000,000 in the aggregate.

 

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(c)          Closing.
The First Closing and any applicable Subsequent Closings are each referred to in this Agreement as a “Closing.”
The First Closing Date and any Subsequent Closing Dates are sometimes referred to herein as a “Closing Date.”
All Closings shall occur at the offices of Gracin & Marlow, LLP, counsel to the Company, at The Chrysler Building, 405 Lexington
Avenue, 26th Floor, New York, New York 10174, or remotely via the exchange of documents and signatures.

 

2.3.         Closing Deliveries.
At each Closing, the Company shall deliver to the Investors, against delivery by the Investor of the Purchase Price (as provided
below): (i) duly issued certificates representing the Common Stock and Warrants comprising the purchased Units, unless, at the
Placement Agent’s request, the physical delivery of the Common Stock and Warrants so purchased is deferred until the final
Closing; (ii) this Agreement duly executed by the Company; and (iii) the Registration Rights Agreement duly executed by the Company.
At each Closing, each Investor shall deliver or cause to be delivered to the Company: (w) this Agreement duly executed by the
Investor; (x) the Registration Rights Agreement duly executed by the Investor; (y) a fully completed and duly executed Investor
Questionnaire; and (z) the Purchase Price set forth in its counterpart signature page annexed hereto by paying United States dollars
via bank, certified or personal check which has cleared prior to the applicable Closing Date or in immediately available funds,
by wire transfer to the following escrow account:

 

3.          Representations,
Warranties and Acknowledgments of the Investors.

 

Each Investor, severally
and not jointly, represents and warrants to the Company as to such Investor that:

 

3.1           Authorization.
The execution, delivery and performance by the Investor of the Transaction Documents and the Investor Questionnaire to which such
Investor is a party or has executed have been duly authorized and will each constitute the valid and legally binding obligation
of such Investor, enforceable against such Investor in accordance with their respective terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’
rights generally. The execution, delivery and performance by the Investor of this Agreement and the Registration Rights Agreement
and the consummation by the Investor of the transactions contemplated hereby and thereby will not: (i) result in a violation of
the organizational documents of the Investor, if the Investor is an entity; (ii) conflict with, or 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 such Investor is a party; or (iii) result in a
violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such
Investor, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Investor to perform
its obligations hereunder.

 

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3.2           Purchase
Entirely for Own Account. The Investor understands that the Securities are “restricted securities” and have not
been registered under the Securities Act or any applicable state securities law. The Securities to be received by each Investor
hereunder will be acquired for such Investor’s own account, not as nominee or agent, and not with a view to the resale or
distribution of any part thereof in violation of the Securities Act, and such Investor has no present intention of selling, granting
any participation in, or otherwise distributing the same in violation of the Securities Act, without prejudice, however, to such
Investor’s right at all times to sell or otherwise dispose of all or any part of such Securities in compliance with applicable
federal and state securities laws. Nothing contained herein shall be deemed a representation or warranty by such Investor
to hold the Securities for any period of time. Such Investor is not a broker-dealer registered with the Securities and Exchange
Commission under the Exchange Act or an entity engaged in a business that would require it to be so registered. Such Investor is
acquiring the Securities hereunder in the ordinary course of its business. The Investor understands that he, she or it may not
be able to sell any of the Securities without prior registration of the Common Stock that is issued as part of the Unit or the
shares of common stock underlying the Warrants under the Securities Act or the existence of an exemption from such registration
requirement.

 

3.3.          Investment
Experience. The Investor acknowledges that the purchase of the Units is a highly speculative investment and that he, she or
it can bear the economic risk and complete loss of his, hers or its investment in the Units and has such knowledge and experience
in financial or business matters such that he, she or it is capable of evaluating the merits and risks of the investment therein
as contemplated hereby.

 

3.4          Disclosure
of Information. The Investor has had an opportunity to receive all information related to the Company and the Securities requested
by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions
of the offering of the Units. Neither such inquiries nor any other due diligence investigation conducted by such Investor shall
modify, amend or affect such Investor’s right to rely on the Company’s representations and warranties contained in
this Agreement. The Investor acknowledges that it has reviewed the Company’s Private Placement Memorandum in evaluating the
investment in the Units. Without limiting the generality of the foregoing, the Investor acknowledges that it has reviewed the risk
factors in the Private Placement Memorandum.

 

3.5           Dilution.
The Investor acknowledges that there may be future substantial dilution to holders of the Company’s Common Stock when additional
equity or convertible debt securities are sold.

 

3.6           Restricted
Securities. The Investor understands that the Units, and the components thereof, are characterized as “restricted securities”
under the U.S. federal securities laws since they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act
only in certain limited circumstances.

 

3.7           Legends.
It is understood that, except as provided below, certificates evidencing the Securities may bear the following or any similar legend:

 

(a)         “The securities
represented hereby may not be transferred unless (i) such securities have been registered for sale pursuant to the Securities Act
of 1933, as amended; (ii) such securities may be sold pursuant to an available exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act; or (iii) the Company has received an opinion of counsel reasonably satisfactory
to it that such transfer may lawfully be made without registration under the Securities Act of 1933 or qualification under applicable
state securities laws.”

 

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(b)          If
required by the authorities of any state in connection with the issuance of sale of the Securities, the legend required by such
state authority.

 

3.8           Investor
Status. The Investor acknowledges that the Securities are being offered only to investors who are “Accredited Investors”
as defined in Rule 501(a) of Regulation D, as amended, under the Securities Act (“Regulation D”). The Investor
hereby confirms that it is an Accredited Investor and is not a “bad actor” as defined in Rule 506(d) of Regulation
D. Further, the Investor has completed and returned the Investor Questionnaire accompanying this Agreement providing evidence of
such qualification. The Investor is not a registered broker dealer registered under Section 15(a) of the Exchange Act, or a member
of the Financial Industry Regulatory Authority Inc. (“FINRA”), or an entity engaged in the business of being
a broker-dealer.

 

3.9           No
General Solicitation. The Investor did not learn of the investment in the Securities as a result of any public advertising
or general solicitation.

 

3.10         Brokers
and Finders. No Investor will have, as a result of the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company, any Subsidiary or any other Investor, for any commission, fee or other compensation
pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Investor.

 

3.11         Residency.
The Investor’s residence (if an individual) or office in which its investment decision with respect to the Units was made
(if an entity) are located at the address immediately below such Investor’s name on its signature page hereto.

 

3.12         Disclosure;
Material Non-public Information.

 

(a)          The
Investor, by executing this Securities Purchase Agreement, acknowledges that the undersigned has read the following investor notice:

 

NO OFFERING LITERATURE OR ADVERTISING,
IN WHATEVER FORM, MAY BE RELIED ON BY INVESTORS IN EVALUATING THE OFFERING OF THESE SECURITIES OTHER THAN THE PRIVATE PLACEMENT
MEMORANDUM DATED MAY 1, 2015 SUPPLIED BY THE COMPANY AND THE COMPANY’S REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN. NO
INFORMATION PROVIDED TO PROSPECTIVE INVESTORS IN ANY OTHER FORMAT OR THROUGH ANY OTHER FORUM, INCLUDING, WITHOUT LIMITATION, ANY
WEBINAR, POWERPOINT PRESENTATION, EXECUTIVE SUMMARY OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, PROJECTIONS, SHALL BE CONSIDERED
PART OF THE TRANSACTION DOCUMENTS AND IS NOT TO BE RELIED UPON IN CONNECTION WITH ANY INVESTMENT DECISION. NO PERSON HAS BEEN AUTHORIZED
TO MAKE REPRESENTATIONS, OR GIVE ANY INFORMATION, WITH RESPECT TO THESE SECURITIES, EXCEPT THE INFORMATION CONTAINED IN THE TRANSACTION
DOCUMENTS, AND ANY INFORMATION OTHER THAN THAT CONTAINED THEREIN MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY
OR ANY OF ITS REPRESENTATIVES OR AFFILIATES.

 

(b)          The
Investor, by executing a copy of this Agreement, also acknowledges the following:

 

THE UNDERSIGNED AGREES WITH THE COMPANY
TO NOT, DIRECTLY OR INDIRECTLY THROUGH AFFILIATES OR OTHERWISE, PURCHASE OR SELL ANY SHARES OF THE COMPANY’S COMMON STOCK
OR SECURITIES CONVERTIBLE INTO COMMON STOCK AT ANY TIME THAT THE UNDERSIGNED POSSESSES MATERIAL NON-PUBLIC INFORMATION CONCERNING
THE COMPANY.

 

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(c)         No aspect of
this offering has been reviewed by the United States Securities and Exchange Commission or the securities regulatory authorities
of any state and that none of the offering materials nor any other written materials furnished by the Company and used in connection
with this offering has been reviewed by any federal or state securities regulatory bodies or authority.

 

4.         Representations and Warranties
of the Company.

 

The Company represents,
warrants and covenants to the Investors that:

 

4.1.          Organization;
Execution, Delivery and Performance.

 

(a) The Company and
each of its Subsidiaries, is a corporation or other entity duly organized, validly existing and in good standing under the laws
of the jurisdiction in which it is incorporated or organized, with full power and authority (corporate and other) to own, lease,
use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. The Company
is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its ownership
or use of property or the nature of the business conducted by it makes such qualification necessary except where the failure to
be so qualified or in good standing would not have a Material Adverse Effect.

 

(b)(i)          The
Company has all requisite corporate power and authority to enter into and perform the Transaction Documents to be entered into
by the Company and to consummate the transactions contemplated hereby and thereby 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 the Company of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Securities)
have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its
Board of Directors, or its stockholders, is required; (iii) each of the Transaction Documents has been duly executed and delivered
by the Company by its authorized representative, and such authorized representative is a true and official representative with
authority to sign each such document and the other documents or certificates executed in connection herewith and bind the Company
accordingly; and (iv) each of the Transaction Documents constitutes, and upon execution and delivery thereof by the Company will
constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms,
except to the extent limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application
affecting enforcement of creditors’ rights and general principles of equity that restrict the availability of equitable or
legal remedies.

 

4.2.         Securities
Duly Authorized. The shares of Common Stock to be issued to each such Investor pursuant to this Agreement, when issued and
delivered in accordance with the terms of this Agreement, will be duly and validly issued and will be fully paid and non-assessable
and free from all taxes or liens with respect to the issue thereof and shall not be subject to preemptive rights or other similar
rights of stockholders of the Company. The Warrants to be issued to each such Investor, when issued in accordance with the terms
of this Agreement, will be legal, valid and binding obligations of the Company enforceable in accordance with their terms. The
shares of Common Stock issuable upon exercise of the Warrants in accordance with their terms will be duly and validly issued and
fully paid and non-assessable. Subject to the accuracy of the representations and warranties of the Investors to this Agreement,
the offer and issuance by the Company of the Securities is exempt from registration under the Securities Act.

 

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4.3           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 will not: (i) conflict with or result in a violation of any provision
of the Certificate of Incorporation or By-laws; or (ii) violate or conflict with, or result in a breach of any provision of, or
constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument
to which the Company or any of its Subsidiaries is a party, except for possible violations, conflicts or defaults as would not,
individually or in the aggregate, have a Material Adverse Effect; or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations
to which the Company or its securities are subject) 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. Neither the Company nor any of its Subsidiaries is in
default (and no event has occurred which with notice or lapse of time or both could put the Company or any of its Subsidiaries
in default) under, and neither the Company nor any of its Subsidiaries has taken any action or failed to take any action that would
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 by which any property or assets of the Company or any of its Subsidiaries
is bound or affected, or for possible defaults as would not, individually or in the aggregate, have a Material Adverse Effect.
The businesses of the Company and its Subsidiaries are not being conducted in violation of any law, rule, ordinance or regulation
of any governmental entity, except for possible violations which would not, individually or in the aggregate, have a Material Adverse
Effect. Except as required under the Securities Act, the Exchange Act, and any applicable state securities laws, the Company is
not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental
agency, regulatory agency, self regulatory organization or stock market or any third party in order for it to execute, deliver
or perform any of its obligations under this Agreement or to issue and sell the Securities in accordance with the terms hereof.
All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof.

 

4.4.          Capitalization.
As of May 15, 2015, the authorized capital stock of the Company consists of (i) 50,000,000 shares of Common Stock, of which 20,000,000
shares are outstanding, 10,000,000 shares of Preferred Stock, of which no shares are outsanding. In the offering contemplated by
this Agreement, up to 4,000,000 shares of Common Stock may be issued and Warrants exercisable for up to 4,000,000 shares of Common
Stock may be issued (exclusive of any securities to be issued to the Placement Agent). The Company has reserved, and at all times
will keep reserved, a sufficient number of shares of Common Stock for issuance upon the exercise of the Warrants. Except as described
in the Private Placement Memorandum: (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls,
rights of first refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever relating
to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries,
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of Common Stock
of the Company or any of its Subsidiaries; (ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries
is obligated to register the sale of any of its or their securities under the Securities Act (except for the registration rights
provisions contained herein and in the Registration Rights Agreement); and (iii) there are no anti-dilution or price adjustment
provisions contained in any security issued by the Company (or in any agreement providing rights to security holders) that will
be triggered by the issuance of the Securities. All of such outstanding shares of Common Stock are, or upon issuance will be, duly
authorized, validly issued, fully paid and non-assessable. No shares of Common Stock of the Company are subject to preemptive rights
or any other similar rights of the stockholders of the Company or any Lien imposed through the actions or failure to act of the
Company.

 

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4.5.          Permits;
Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations, licenses,
permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its
properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”),
and there is no action pending or, to the Company’s Knowledge, threatened regarding suspension or cancellation of any of
the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of
the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect. Since May 10, 2015, neither the Company nor any of its Subsidiaries has received
any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to
possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

 

4.6         Litigation.
There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency,
self-regulatory organization or body pending or, to the Company’s knowledge or any of its Subsidiaries, threatened against
or affecting the Company or any of its Subsidiaries, or their respective businesses, properties or assets or their officers or
directors in their capacity as such, that would have a Material Adverse Effect. The Company is unaware of any facts or circumstances
which might give rise to any of the foregoing.

 

4.7          No
Material Changes.

 

Since May 10, 2015, except
as set forth in the Private Placement Memorandum, there has not been:

 

(a)          Any
material adverse change in the operations or business of the Company from that described in the Memorandum, or any material transaction
or commitment effected or entered into by the Company outside of the ordinary course of business;

 

(b)          Any
effect, change or circumstance which has had, or could reasonably be expected to have, a Material Adverse Effect;

 

(c)          Any
incurrence of any material liability outside of the ordinary course of business; or

 

(d)          Any
possible effect, change or circumstance which would likely have or could reasonably be expected to have, a substantial dilutive
effect on the Common Stock, except forcertain highly confidential discussions which the Company is currently engaged in regarding
a possible significant transaction involving a substantial monetary investment in the Company at a substantial discount which,
if consummated, would likely result in substantial dilution to the Investor.

 

4.8         No General
Solicitation. Neither the Company nor any Person participating on the Company’s behalf in the transactions contemplated
hereby has conducted any “general solicitation,” as such term is defined in Regulation D promulgated under the Securities
Act, with respect to the Units being offered hereby.

 

4.9         No Integrated
Offering. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf, has directly or indirectly
made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration
under the Securities Act of the issuance of the Securities to the Investors. The issuance of the Securities to the Investors will
not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any stockholder
approval provisions applicable to the Company or its securities.

 

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4.10         No
Brokers. Other than the Placement Agent, the Company has taken no action that would give rise to any claim by any Person for
brokerage commissions, transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

4.11         Form
D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Securities as required under Regulation D within
15 days after the first funds are received in escrow. The Company shall, on or before the Closing Date, take such action as the
Company shall reasonably determine is necessary to qualify the Securities for sale to the Investors at the applicable Closing pursuant
to this Agreement under applicable securities or “blue sky” laws of the states of the United States (or to obtain an
exemption from such qualification).

 

4.12         Disclosure.
All disclosure provided to the Investors regarding the Company and its Subsidiaries, their businesses and the transactions contemplated
hereby, including the schedules to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries is true
and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading. Each press release issued by the Company or any of its Subsidiaries during the 12 months preceding the date of this
Agreement did not at the time of release contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are
made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries
or its or their business, properties, liabilities, results of operations or financial conditions, which, under applicable law,
rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been
so publicly disclosed.

 

4.13         Intellectual
Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent rights, copyrights, original works, inventions, licenses,
approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations
therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as
now conducted and as presently proposed to be conducted. None of the Company’s or its Subsidiaries’ Intellectual Property
Rights have expired, terminated or been abandoned, or are expected to expire, terminate or be abandoned, within two years from
the date of this Agreement. To the Company’s Knowledge, there has not been any infringement by the Company or any of its
Subsidiaries of Intellectual Property Rights of others. Except as set forth in the Private Placement Memorndum, there is no claim,
action or proceeding being made or brought, or to the Company’s Knowledge, being threatened, against the Company or any of
its Subsidiaries regarding their Intellectual Property Rights. The Company is not aware of any facts or circumstances which might
give rise to any of the foregoing infringements or Claims. The Company and each of its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights, except where failure to
take such measures would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

4.14         Tax
Status. Except for occurrences that would not, either individually or in the aggregate, reasonably be expected to result in
a Material Adverse Effect, the Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state
income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject; (ii) has timely
paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith; and (iii) has set aside on its books provision reasonably
adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company and its Subsidiaries know of no basis for any such claim.

 

    	 	10	 

     

    

 

4.15         Investment
Company Act Status. The Company and its Subsidiaries are not, and after giving effect to the offering and sale of the Units
and the application of the proceeds thereof will not be, required to register as an “investment company” as such term
is defined in the Investment Company Act of 1940, as amended.

 

4.16         No
Bad Actor Disqualification or Disclosure. Except as may be disclosed in the PPM, neither the Company nor any predecessor of
the Company, any Company director, executive officer or beneficial owner of 20% or more of the Company’s outstanding voting
equity securities is a “bad actor” as that term is defined in Rule 506(d) of Regulation D.

 

5.          Indemnification.

 

5.1           Indemnification
by the Company. (a) In addition to the indemnity provided in the Registration Rights Agreement, the Company will indemnify
and hold each Investor and, if applicable, its directors, officers, stockholders, members, partners, employees and agents (and
any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any
other title), each Person who controls such Investor (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, stockholders, agents, members, partners or employees (and any other Persons with
a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such
controlling person (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’
fees and costs of investigation (“Claims”) that any such Purchaser Party may suffer or incur as a result of
any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents. The Company will not be liable to any Purchaser Party under this Agreement to the extent, but only to the
extent that a Claim is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants
or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents; provided that such a claim
for indemnification relating to any breach of any of the representations or warranties made by the Company in this Agreement is
made within one year from the Closing.

 

5.2         Promptly after
receipt by any Person (the “Indemnified Person”) of notice of any demand, claim or circumstances which would
or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity may
be sought pursuant to Section 5.1, such Indemnified Person shall promptly notify the Company in writing, and the Company
shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and shall
assume the payment of all fees and expenses; provided, however, that the failure of any Indemnified Person
so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is actually
and materially and adversely prejudiced by such failure to notify. In any such proceeding, any Indemnified Person shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless:
(i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel; (ii) the Company shall
have failed promptly to assume the defense of such proceeding and to employ counsel reasonably satisfactory to such Indemnified
Person in such proceeding; or (iii) in the reasonable judgment of counsel to such Indemnified Person, representation of both parties
by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the
indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more
than one separate firm of attorneys at any time for all such indemnified parties. The Company shall not be liable for any settlement
of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned.
Without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, delayed or conditioned,
the Company shall not effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person
is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement
includes an unconditional release of such Indemnified Person from all liability arising out of such proceeding.

 

    	 	11	 

     

    

 

6.          Transfer
Restrictions.

 

6.1.          Transfer
or Resale. Each Investor understands that:

 

Except as provided
in the Registration Rights Agreement, the sale or resale of all or any portion of the Securities has not been and is not being
registered under the Securities Act or any applicable state securities laws, and all or any portion of the Securities may not be
transferred unless:

 

(a)          the Securities
are sold pursuant to an effective registration statement under the Securities Act;

 

(b)          the
Investor shall have delivered to the Company a customary opinion of counsel that shall be in form, substance and scope reasonably
acceptable to the Company, to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an
exemption from such registration;

 

(c)         the Securities
are sold or transferred to an “affiliate” (as defined in Rule 144 (or any successor rule) as promulgated under
the Securities Act (“Rule 144”)) of the Investor who agrees to sell or otherwise transfer the Securities only
in accordance with this Section 6.1 and who is an Accredited Investor;

 

(d)         the Securities
are sold pursuant to Rule 144; or

 

(e)         the Securities
are sold pursuant to Regulation S (or any successor rule) as promulgated under the Securities Act (“Regulation S”);

 

and, in each case, the Investor shall have
delivered to the Company, at the cost of the Investor, a customary opinion of counsel, in form, substance and scope reasonably
acceptable to the Company. Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may
be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

7.          Conditions
to Closing of the Investors.

 

The obligation of each
Investor hereunder to purchase the Units at the Closing is subject to the satisfaction, at or before the Closing Date, of each
of the following conditions, provided that these conditions are for each Investor’s sole benefit and may be waived by such
Investor at any time in its sole discretion by providing the Company with prior written notice thereof:

 

7.1         Representations,
Warranties and Covenants. The representations and warranties of the Company shall be true and correct in all material respects
as of the date when made and as of the Closing Date as though originally made at that time (except for representations and warranties
that speak as of a specific date, which shall be true and correct in all material respects as of such date), and the Company shall
have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required to be performed,
satisfied or complied with by the Company at or prior to the Closing Date.

 

7.2           Consents.
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Securities.

 

7.3         Delivery
by Company. The Company shall have duly executed and delivered to each Investor (a) each of the other Transaction Documents;
(b)a certificate evidencing the number of shares of Common Stock as is set forth on the signature page hereby being purchased by
such Investor at the Closing pursuant to this Agreement; and (c) the Warrants relating to such shares (i.e., a Warrant for
one share of the Company’s Common Stock for every share of Common Stock purchased in the offering). The foregoing notwithstanding,
the Investor acknowledges that no Securities will be issued until the final Closing.

 

    	 	12	 

     

    

 

7.5           No Material
Adverse Effect. Since the date of first execution of this Agreement, no event or series of events shall have occurred that
reasonably would have or result in a Material Adverse Effect.

 

7.6           No
Prohibition. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any
of the transactions contemplated by the Transaction Documents.

 

7.7           Other Documents.
The Company shall have delivered to such Investor such other documents, instruments or certificates relating to the transactions
contemplated by this Agreement as the Placement Agent, such Investor or its counsel may reasonably request.

 

8.             Conditions to Closing of the
Company.

 

The obligations of
the Company to effect the transactions contemplated by this Agreement with each Investor are subject to the fulfillment at or prior
to each Closing Date of the conditions listed below.

 

8.1.         Representations
and Warranties. The representations and warranties made by such Investor in Section 3 shall be true and correct in all material
respects at the time of Closing as if made on and as of such date, and the Investor shall have performed, satisfied and complied
in all material respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by
the Investor at or prior to the Closing Date.

 

8.2           Corporate
Proceedings. If the Investor is an entity, all corporate and other proceedings required to be undertaken by such Investor in
connection with the transactions contemplated hereby shall have occurred and all documents and instruments incident to such proceedings
shall be reasonably satisfactory in substance and form to the Company.

 

8.3           Delivery
by the Investor. The Investor shall have duly executed and delivered to the Company (a) each of the other Transaction Documents
and the Investor Questionnaire and (b) the purchase price.

 

8.4           No
Prohibition. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any
of the transactions contemplated by the Transaction Documents.

 

8.5         Other Documents.
The Investor shall have delivered to the Company such other documents, instruments or certificates relating to the transactions
contemplated by this Agreement as the Company or its counsel may reasonably request.

 

9              Miscellaneous.

 

9.1.          Compensation
of Placement Agent. Each Investor acknowledges that it is aware that the Placement Agent will receive from the Company, in
consideration for its services as financial advisor and placement agent in respect of the transactions contemplated hereby: (a)
a commission success fee equal to 10% of the Purchase Price of the Units sold at each Closing, payable in cash; (b) a non-accountable
expense allowance equal to 3% of the Purchase Price of the Units sold at each Closing, less the $20,000 advance previously delivered
by the Company in respect of same, payable in cash; and (c) five-year warrants to purchase such number of units equal to 15% of
the number of Units sold in this offering, at an exercise price equal to the $1.25 per unit. In addition, the Placement Agent received
a right of first refusal to participate as placement agent or managing underwriter in any subsequent financings of equity or debt
securities by the Company (if a placement agent or underwriter is to be used in such financing) for 12 months following the last
Closing hereunder if the Placement Agent raises at least $3,000,000 in this offering from investors first introduced to the Company
by the Placement Agent. The executed placement agent agreement between the Company and the Placement Agent, a copy of which is
available to the Investor upon request, contains additional rights and terms not enumerated herein.

 

    	 	13	 

     

    

 

9.2.          Rule 506(e)
of Regulation D Disclosure. Each Investor acknowledges that it is aware that the Managing Partner in the Paulson Investment
Company, LLC’s New York office, Robert J. Setteducati, entered into a final settlement with the Massachusetts Securities
Division in 2001 pursuant to which he agreed, among other things, never to seek to register with the Massachusetts Securities Division
in any capacity. The settlement resolved allegations by the Massachusetts Securities Division that Mr. Setteducati failed to adequately
supervise employees at a prior brokerage firm.

 

9.3           Notices.
All notices, requests, demands and other communications provided in connection with this Agreement shall be in writing and shall
be deemed to have been duly given at the time when hand delivered, delivered by express courier, or sent by facsimile (with receipt
confirmed by the sender’s transmitting device) in accordance with the contact information provided below or such other contact
information as the parties may have duly provided by notice.

 

	The Company:	
        With a copy to:

         

	 	 
	QPAGOS Corporation	Gracin & Marlow, LLP
	Paseo de la Reforma 404 Piso 15 PH	405 Lexington Avenue, 26th Floor
	Col. Juárez, Del. Cuauhtémoc	New York, New York 10174
	México, D.F. C.P. 06600	Attention: Leslie Marlow, Esq.
	Attention: Gaston Pereira	Telephone: (212) 907-6457
	Telephone: 	Facsimile: (212) 208-4657
	Facsimile:	 

 

The Investors:

 

As per the contact information provided on the signature pages
hereof.

 

	The Placement Agent	With a copy to:
	 	 
	Paulson Investment Company, LLC	Murphy & Weiner, P.C.
	1001 SW 5th Avenue, Suite 1460	430 Cambridge Avenue, Suite 100
	Portland, OR 97204	Palo Alto, CA 94306
	Telephone: (503) 243-6000	Attention: Debra K. Weiner, Esq.
	Facsimile: (503) 248-2391	Telephone: (650) 218-9818
	 	Facsimile: (650) 323-1108

 

9.4         Survival
of Representations and Warranties. Each party hereto covenants and agrees that the representations and warranties of such party
contained in this Agreement shall survive the Closing. Each Investor shall be responsible only for its own representations, warranties,
agreements and covenants hereunder.

 

9.5         Confidentiality
After the Date Hereof. Each Investor, severally and not jointly with the other Investors, covenants that until such time as
the transactions contemplated by this Agreement and such other material non-public information related to the Company in possession
of the Investor are publicly disclosed by the Company, such Investor will maintain the confidentiality of all disclosures made
to it in connection with this transaction (including the existence and terms of this transaction).

 

    	 	14	 

     

    

 

9.6           Entire
Agreement. This Agreement contains the entire agreement between the parties hereto in respect of the subject matter contained
herein and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter
contained herein.

 

9.7           Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and, except for: (i) Persons entitled to indemnification pursuant to Section 5.1; (ii) the Placement Agent and its
designees, successors and assigns; and (iii) other registered broker-dealers, if any, who are specifically agreed to be and acknowledged
by each party as third party beneficiaries hereof, is not for the benefit of, nor may any provision hereof be enforced by, any
other Person.

 

9.8           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor any Investor shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other.

 

Notwithstanding the
foregoing, but subject to the provisions of Section 6.1 hereof, any Investor may, without the consent of the Company, assign its
rights hereunder to any Person that purchases Units or the shares or warrants included therein or issuable upon exercise thereof
in a private transaction from an Investor or to any of its “affiliates,” as that term is defined under the Exchange
Act or any subsequent Person acquiring such Units or shares in accordance herewith.

 

9.9         Binding
Effect; Benefits. This Agreement and all the provisions hereof shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns; nothing in this Agreement, expressed or implied, is intended to confer
on any Persons other than the parties hereto or their respective successors and permitted assigns, any rights, remedies, obligations
or liabilities under or by reason of this Agreement.

 

9.10         Amendment;
Waivers. All modifications, amendments or waivers to this Agreement shall require the written consent of each of (i) the Company
and (ii) a majority-in-interest of the Investors (based on the number of Units purchased hereunder).

 

9.11
        Applicable Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware without giving effect to the conflict of law provisions thereof, and the parties hereto.

 

9.12         Arbitration.
Each Investor and the Company agree that they shall resolve all disputes, controversies and differences which may arise between
them, out of or in relation to or in connection with this Agreement, after discussion in good faith attempting to reach an amicable
solution. Provided that such disputes, controversies and differences remain unsettled after discussion between the parties, both
parties agree that those unsettled matter(s) shall be finally settled by arbitration in New York, New York in accordance with the
latest Rules of the American Arbitration Association. Such arbitration shall be conducted by three arbitrators appointed as follows:
each party will appoint one arbitrator and the appointed arbitrators shall appoint a third arbitrator. If within 30 days after
confirmation of the last appointed arbitrator, such arbitrators have failed to agree upon a chairman, then the chairman will be
appointed by the American Arbitration Association. The decision of the tribunal shall be final and may not be appealed. The arbitral
tribunal may, in its discretion award fees and costs as part of its award. Judgment on the arbitral award may be entered by any
court of competent jurisdiction, including any court that has jurisdiction over either party or any of their assets. At the request
of any party, the arbitration proceeding shall be conducted in the utmost secrecy subject to a requirement of law to disclose.
In such case, all documents, testimony and records shall be received, heard and maintained by the arbitrators in secrecy, available
for inspection only by any party and by their attorneys and experts who shall agree, in advance and in writing, to receive all
such information in secrecy. 

 

    	 	15	 

     

    

 

9.13
        Further Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts and
shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto reasonably
may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby. 

 

9.14         Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which
taken together shall constitute one and the same instrument. This Agreement may also be executed via facsimile, which shall be
deemed an original.

 

IN WITNESS WHEREOF,
the undersigned Investors and the Company have caused this Securities Purchase Agreement to be duly executed as of the date first
above written.

 

	 	QPAGOS CORPORATION	 
	 	 	 	 
	 	By: 	 	 
	 	Name: Gaston Pereira	 
	 	Title: President and Chief Executive Officer	 

 

INVESTORS: 

 

The Investors executing
the Signature Page in the form attached hereto as Annex A and delivering the same to the Company or its agents shall be
deemed to have executed this Agreement and agreed to the terms hereof.

 

    	 	16	 

     

    

 

Annex A

Securities Purchase Agreement

Investor Counterpart Signature Page

 

The undersigned, desiring to: (i) enter
into this Securities Purchase Agreement dated as of May __, 2015 (the “Agreement”), with the undersigned, QPAGOS
Corporation, a Delaware corporation (the “Company”), in or substantially in the form furnished to the undersigned
and (ii) purchase the number of Units as set forth below, hereby agrees to purchase the Units from the Company as of the Closing
and further agrees to join the Agreement as a party thereto, with all the rights and privileges appertaining thereto, and to be
bound in all respects by the terms and conditions thereof. The undersigned specifically acknowledges having read the representations
in the Agreement section entitled “Representations, Warranties and Acknowledgments of the Investors,” and hereby represents
that the statements contained therein are complete and accurate with respect to the undersigned as an Investor.

 

	All Investors: 	Name of Investor: 
	 	 	 
	Address:	 	If an entity: 

 

	 	Print Name of Entity: 
	 	 
	 	 
	 	By: 
	 	Name: 
	 	Title: 

 

	 	 	If an individual: 
	Telephone No.:	 	 	 
	 	 	Print Name: 	 
	Facsimile No.: 	 	 	 
	 	 	Signature: 	 
	 	 	 	 
	Email Address:	 	If joint individuals: 
	 	 	 
	 	 	Print Name: 	 
	 	 	 	 
	 	 	Signature: 	 

 

The Investor hereby elects to purchase
____________ Units (each Unit consisting of one share of Common Stock and one five-year Warrant exercisable at an exercise price
of $1.25 per share entitling the holder to purchase one share of Common Stock) at a purchase price of $1.25 per Unit under
the Securities Purchase Agreement for a total Purchase Price of $__________ (to be completed by Investor). 

 

    	 	1Exhibit 10.6

 

PLACEMENT AGENT AGREEMENT

 

April 10, 2015

 

This Placement Agent
Agreement is made by and between QPagos, S.A.P.I. DE C.V., a company duly incorporated in Mexico City, Mexico, registration number
QPA 131 106 6H7 (“QPagos” or the “Company”), and Paulson Investment Company, LLC, an Oregon limited
liability company (the “Placement Agent”), as of the date first above written. The Company hereby engages the
Placement Agent to assist the Company as its exclusive Placement Agent in obtaining $_______ in financing through a private placement
of its units of its common stock (“Common Stock”) and warrants to purchase shares of Common on terms to be agreed upon
between the Company and the Placement Agent (the “Financing”), as described in and pursuant to the terms and
conditions described in definitive transaction documents to be prepared by the Company with the assistance of the Placement Agent.
The Placement Agent shall have the right to engage one or more sub-agents as provided herein. For purposes of this Agreement, the
“Company” shall refer to QPagos or its successor entity following the anticipated merger of QPagos into a private U.S.
company.

 

NOW THEREFORE, the
parties hereto based on the foregoing and the mutual covenants set forth below and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, do hereby agree as follows:

 

1.    Services.

 

(a)   The
Placement Agent shall offer participation in the Financing to its clients and other persons with whom the Placement Agent or the
Company or any of its respective officers, directors, employees or affiliates has a pre-existing business relationship and that
the Placement Agent reasonably believes are “accredited investors” as defined by Regulation D promulgated under the
Securities Act of 1933, as amended (the “Securities Act”), which persons are collectively referred to herein
as “Qualified Investors”). Qualified Investors who purchase Units in the Financing are sometimes referred to
herein as the “Purchasers.” The Placement Agent shall be responsible for (i) the initial distribution to the
Qualified Investors of the Company’s confidential private placement memorandum and other offering documents (the “Memorandum”),
which shall be created by the Company, with the assistance of the Placement Agent, and shall
include a brief summary of the Company and its business, risk factors, capitalization and current financial information, as well
as the relevant subscription documents (collectively, with the Memorandum, the “Offering Materials”); with respect
to such distribution of the Offering Materials, the Placement Agent shall not be required to print hard copies, but may use electronic
documents for distribution; (ii) organizing, obtaining facilities for, and conducting one or more investor presentations; and (iii)
providing other services reasonably related to serving as the Placement Agent for the Company in connection with the Financing.
The Placement Agent acknowledges that (i) the Company may determine, in its sole discretion, whether to accept an offer of
subscription to the Financing by a Qualified Investor and (ii) the Company is not obligated to compensate the Placement Agent
for such offered subscriptions to the Company that the Company does not accept. Notwithstanding the foregoing, unless the Company
has a specific objection to any particular Qualified Investor being a stockholder of the Company (for example, the proposed investor
competes with the Company or is affiliated with a competitor of the Company, is not accredited, does not satisfactorily complete
a purchaser questionnaire or subscription agreement, is known to be disreputable or dishonest, or for other, legitimate investor-specific
reasons), the Company shall accept such offer of subscription from such Qualified Investors.

 

      

     

    

 

(b)  The
Company shall make members of management and other employees available to the Placement Agent as the Placement Agent shall reasonably
request for purposes of satisfying the Placement Agent’s due diligence requirements and consummating the Financing, shall
make its Chief Executive Officer, Chief Financial Officer and other key management members available to attend a reasonable number
of investor presentations, as recommended by the Placement Agent and shall commit such time and other resources as are reasonably
necessary or appropriate to support the Placement Agent in its efforts to secure the reasonable and timely success of the Financing.
The Company shall cooperate with the Placement Agent in connection with, and shall make available to the Placement Agent such documents
and other information as the Placement Agent shall reasonably request in order to satisfy its due diligence requirements, subject
to any applicable confidentiality requirements.

 

(c)  The
Placement Agent acknowledges that (i) the Company may determine, in its sole discretion, whether to accept an offer of subscription
to the Financing by a Qualified Investor and (ii) the Company is not obligated to compensate the Placement Agent for such offered
subscriptions to the Company that the Company does not accept. Notwithstanding the foregoing, unless the Company has a specific
objection to any particular Qualified Investor being a stockholder of the Company (for example, the investor competes with the
Company or is affiliated with a competitor of the Company, is not accredited, does not satisfactorily complete a purchaser questionnaire
or subscription agreement, is known to be disreputable or dishonest or for other, legitimate investor-specific reasons), the Company
shall accept such offer of subscription from such Qualified Investors.

 

2.    Compensation
and Expenses Payable to the Placement Agent.

 

(a)  The
Company shall, at each closing of the Financing (each a “Closing”), as compensation for the services provided
by the Placement Agent hereunder, pay the Placement Agent a cash commission equal to 10% of the gross proceeds of the Financing
closed on that closing date (the “Cash Fee”). Such Cash Fee shall be paid on the gross cash proceeds invested
by the Placement Agent and its affiliates, if any, as well as any Qualified Investor in the Financing.

 

(b)  As
of the date of the final Closing, the Placement Agent shall be issued Placement Agent Warrants (the “Placement Agent Warrants”).
The Placement Agent Warrants shall be exercisable to purchase up to 15% of the total number of Units sold in the Financing, exercisable
for five years at an exercise price per Unit equal to the purchase price per Unit paid by the Purchasers in the Financing. By way
of example, if 1,000,000 Units are sold in the Financing (including any Units purchased by the Placement Agent or any of its affiliates
or employees), the number of Units issuable upon exercise of the Placement Agent Warrant will equal 1,000,000 x 15%, or 150,000
Units, which will be exercisable at the same price as the Units sold to the Purchasers. The Placement Agent Warrants shall have
standard terms, including cashless exercise rights and rights to assign such warrants to affiliates and employees of the Placement
Agent who are “accredited investors.” In addition, the shares of Common Stock (and the shares underlying the exercise
of the warrant component of the Units) into which the Placement Agent Warrants are exercisable will, subject to limitations as
may be imposed by regulatory authorities, have registration rights identical to those of granted to the Purchasers. The Company
shall prepare, execute and deliver the Placement Agent Warrants in such form as shall be provided to the Company and in such names
and amounts as shall be directed by the Placement Agent.

 

(c)  The
Company shall, at each Closing, pay the Placement Agent a “non-accountable expense allowance equal to three percent of the
gross proceeds of the Financing for such Closing Date (the “Expense Allowance”)..

 

    	 	2	 

     

    

 

(d)  In
the event the Financing is not consummated because of any refusal, inability or failure on the part of the Company to perform any
agreement herein or to comply with any provision hereof, the Placement Agent shall be entitled to be reimbursed for its reasonable
accountable expenses incurred in connection with the Financing that are pre-approved by the Company. The Placement Agent shall
provide the Company with a written accounting therefor in reasonable detail (but without the need to include underlying statements
or evidence of payment) in order to retain the $20,000 advance or portion thereof and/or to receive additional reimbursement of
its accountable expenses.

 

(e)  .

 

3.   Term.

 

(a)  Unless
earlier terminated as set forth herein, this Agreement will continue in full force and effect until the earlier of 120 days from
the execution of this Agreement or the final Closing of the Financing as determined by the Company (the amount of which may be
increased at the Company’s discretion), unless extended by mutual agreement of the Company and the Placement Agent for up
to an additional 30 days without notice or consent of the Purchasers or such longer extension if agreed to by the Company and the
Placement Agent (the “Term”).

 

(b)  Prior
to the end of the Term, (i) the Company may terminate this Agreement immediately and without notice in the event of a material
breach of this Agreement by the Placement Agent, and (ii) either party may terminate this Agreement upon 15 days prior written
notice to the other party for any reason, other than material breach of this Agreement by the Placement Agent. In the event the
Company terminates this Agreement, the Placement Agent will be entitled to all applicable cash fees and Placement Agent Warrants
provided for in Section 2 hereof, earned prior to such termination, as well as any unpaid Expense Allowance as provided in Section
2(c) or its reasonable accountable expenses, as provided in Section 2(d), whichever is applicable.

 

(c)  Upon
termination of this Agreement (whether following completion of the Financing or otherwise, other than in the case of a material
breach of this Agreement by the Placement Agent), the Placement Agent shall prepare and deliver to the Company a definitive list
of Qualified Investors contacted by such Placement Agent in connection with the Financing with whom the Company was first introduced
to by the Placement Agent and with whom the Company had discussions during the Term of this Agreement regarding the specific terms
of a financing for the Company (the “Listed Investors”). The Company shall have ten days after receipt of the
Listed Investors to dispute any name listed on such list and any name disputed shall be removed from the list. In the event that
the Company consummates a sale of any of its debt securities, equity securities or securities convertible into or exercisable in
exchange for equity securities to any Listed Investor, or any debt securities held by Listed Investors are converted to equity
securities within a period of 6 months following the date of termination of this Agreement (the “Tail Period”),
then at each closing thereof, the Company shall pay to the Placement Agent the cash compensation, expense allowance and placement
agent warrants set forth in Section 2 in amounts equal to what the Placement Agent would have earned from such sales had the Company
closed on such investments under the terms of this Agreement.

 

(d)  Without
regard to whether the Financing is closed or not, if, during the 6-month period from the date of termination of the Financing efforts
or the final Closing of the Financing, whichever is applicable, the Company obtains a debt facility, whether that be a credit facility
or revolver or any other form of loan transaction (regardless whether such transaction is consummated with a commercial lending
institution, other entity or an individual or group of individuals), which lender has been introduced to the Company by the Placement
Agent, the Placement Agent shall be entitled to a commission equal to one percent of the maximum principal amount of the loan or
credit facility, which shall be payable on the closing date of such debt financing.

 

    	 	3	 

     

    

 

4.   Performance.
In connection with the performance of its duties under this Agreement, the Placement Agent agrees as follows:

 

(a)  The
Placement Agent shall act in a manner consistent with the instructions of the Company and comply with all applicable laws, whether
foreign or domestic, of each jurisdiction in which the Placement Agent proposes to carry on the business contemplated by this Agreement.
The Placement Agent shall not take any action or omit to take any action that would cause the Company to violate any law or any
applicable exemption from registration under the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). The Placement Agent is a member firm of Financial Industry Regulatory Authority, Inc. (“FINRA”)
and has all authority and approvals needed to engage in securities trading and brokerage activities, as well as providing investment
banking and financial advisory services. The Placement Agent represents, warrants and agrees that it shall at all times provide
its services under this Agreement in compliance with applicable law, including but not limited to, conducting the Financing in
a manner intended to qualify it as exempt from the registration requirements of the Securities Act and any applicable state and
foreign laws and regulations, including, without limitation, not taking any action in connection with the Financing or other possible
financing that would constitute a general solicitation or general advertising and not making any offers to any potential investor
that it does not reasonably believe to be an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or
(7) of Regulation D promulgated the Securities Act.

 

(b)  The
Placement Agent shall keep a record of when and to whom each Memorandum is provided. The Placement Agent may comply with this Section
4(b) by maintaining a file that confirms who has viewed or been sent the Memorandum and on which date.

 

(c)  The
Placement Agent shall provide information regarding the Company only that is contained in the Memorandum or is expressly provided
by the Company to the Placement Agent for dissemination to potential investors (such as a Power Point presentation) or that is
available generally to the public (such as public securities filings, press releases or published articles) and shall not make
any additional statements that contain an untrue statement of a material fact or omit to state any fact necessary to make any statement
made by the Placement Agent not misleading in light of the circumstances in which such statements are made.

 

(d)  The
Placement Agent shall not provide the Memorandum or any other information about the Company to any person or firm that, to the
knowledge of the Placement Agent, is a competitor of the Company.

 

(e)  The
Placement Agent shall not engage in any form of general solicitation or general advertising with respect to the Financing.

 

(f)   Before
mentioning or sending any material related to the Company to any potential investor, the Placement Agent shall, on the basis of
the Placement Agent’s prior relationship with the potential offeree, reasonably believe that the potential offeree is: (x) an
“accredited investor” and, if applicable, satisfies any private placement requirements or laws or regulations associated
with the Financing applicable in any non-U.S. jurisdiction and (y) so sophisticated and knowledgeable in business and financial
matters that the potential offeree is capable of evaluating the merits and risks of an investment in the Company. In furtherance
thereof, the Placement Agent shall obtain from each Qualified Investor an accredited investor questionnaire before a subscription
to purchase Units is accepted.

 

(g)  The
Placement Agent shall use its best efforts to cause its officers, directors, employees and affiliates to comply with all of the
foregoing provisions of this Section 4.

 

    	 	4	 

     

    

 

5.     Representations
and Warranties of the Parties.

 

(a)          The
Company represents and warrants to the Placement Agent as follows, which representations and warranties shall be true as of the
date of each closing:

 

(i)          On
the date of the Memorandum and at each Closing Date, the Memorandum will comply in all material respects with the disclosure requirements
of Regulation D under the Securities Act and will neither contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein in light of the circumstances under which they are made, or necessary to make the statements
therein not misleading; provided, however, that the representations and warranties in this subsection shall not apply to
statements in or omissions from the Memorandum made in reliance upon and in conformity with information furnished to the Company
in writing by the Placement Agent expressly for use in the Memorandum.

 

(ii)         The
financial statements included in the Memorandum, if any, present fairly in all material respects the financial position of the
Company as of the dates indicated and the results of its operations for the periods specified.

 

(iii)        The
Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the jurisdiction
in which it was formed, with corporate power and authority to own, lease and operate its properties and conduct its business in
all material respects as described in the Memorandum; and the Company is duly qualified as a foreign corporation to transact business
and is in good standing in each jurisdiction in which the conduct of its business and/or its ownership of property requires such
qualification except for such jurisdictions in which the failure to qualify in the aggregate would not have a material and adverse
effect on the results of operations or financial conditions of the Company.

 

(iv)        Except
as disclosed in the Memorandum, the Company does not have any subsidiaries and does not own any interest in any other corporation,
partnership, joint venture or other entity.

 

(v)         Prior
to the commencement of the Financing, the issued and outstanding capital shares of the Company, consisting solely of shares of
Common Stock, which will be as more fully described in the Memorandum; the issued and outstanding shares of Common Stock described
therein have been duly authorized and validly issued and are fully paid and non-assessable; the Units and underlying Common Stock
and Warrants have been duly authorized for issuance and sale in accordance with this Agreement when issued and delivered by the
Company pursuant to this Agreement and the Subscription Agreement or Securities Purchase Agreement, whichever is applicable, against
payment therefor, will be validly issued, fully paid and non-assessable; the shares of Common Stock and Warrants conform in all
material respects to all the statements relating thereto contained in the Memorandum; there are no outstanding options, warrants
or other rights to purchase shares of preferred stock or shares of Common Stock or any understanding or agreement concerning any
options, warrants or rights to purchase shares of preferred stock, except as set forth in the Memorandum.

 

(vi)        This
Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement, enforceable
in accordance with its terms, except as enforceability of any indemnification provision may be limited under federal securities
laws and except as enforceability of such agreements may be limited by applicable bankruptcy, reorganization, insolvency, moratorium
or other laws relating to or affecting generally the enforcement of creditors' rights, except that any remedy in the nature of
equitable relief is in the discretion of the Court.

 

    	 	5	 

     

    

 

(vii)       On
the date of the Memorandum and at each Closing Date, the Company owns good and marketable title to all properties and assets described
in the Memorandum as owned by it, free and clear of all liens, charges, encumbrances or restrictions, except such as are described
or referred to in the Memorandum or are not materially significant or important in relation to the business of the Company.

 

(viii)      Except
as disclosed in or contemplated by the Memorandum, the Company is not in violation of its Articles of Incorporation or its bylaws,
either as currently amended and in effect, or in default in the performance or observance of any material obligation, agreement,
covenant or condition contained in any material bond, debenture, note or other evidence of indebtedness or in any material contract,
indenture, mortgage, loan agreement, lease, joint venture or other agreement or instrument to which the Company is a party or by
which it or any of its properties are bound; and the execution and delivery of this Agreement, the incurrence of the obligations
herein set forth and the consummation of the transactions herein contemplated will not conflict in any material respect with, or
result in a breach of any of the material terms, conditions or provisions of, or constitute a material default under, the Articles
of Incorporation or bylaws of the Company, or any material bond, debenture, note or other evidence of indebtedness or any material
contract, indenture, mortgage, loan agreement, lease, joint venture or other agreement or instrument to which the Company is a
party or by which it or any of its properties are bound.

 

(ix)         Except
as disclosed in or contemplated by the Memorandum, there is no action, suit or proceeding before or by any court or governmental
agency or body, domestic or foreign, now pending, or, to the knowledge of the Company, threatened against or affecting the Company,
which might result in any material and adverse change in the condition (financial or otherwise), business or prospects of the Company.

 

(x)          Except
as disclosed in or contemplated by the Memorandum, each material contract to which the Company is a party is in full force and
effect or has terminated in accordance with its terms or as set forth in the Memorandum; and no party to any such contract has
given notice of the cancellation of, or to the knowledge of the Company has the intention to, cancel any such material contract.

 

(xi)         Except
as disclosed in or contemplated by the Memorandum and the fees and disbursements payable to the Placement Agent pursuant to this
Agreement, there are no outstanding claims for services either in the nature of a finder's fee, brokerage fee or other similar
fee with respect to the Financing for which the Company or the Placement Agent may be responsible.

 

(b)         Any
certificate signed by any officer of the Company and delivered to the Placement Agent shall be deemed a representation and warranty
by the Company to the Placement Agent as to the matters covered thereby.

 

(c)         The
Placement Agent represents and warrants to the Company as follows, which representations and warranties shall be true as of the
date of each closing:

 

(i)          The
Placement Agent is a limited liability company duly organized, validly existing and in good standing under the laws of the jurisdiction
in which it was formed, and it has all requisite power and authority to enter into this Agreement and to carry out its obligations
hereunder. The Placement Agent is duly qualified as a foreign company in those jurisdictions wherein the failure to so qualify
would have a material adverse effect on its business or properties.

 

    	 	6	 

     

    

 

(ii)         This
Agreement has been duly authorized, executed and delivered by the Placement Agent and on its behalf and constitutes a valid and
legally binding obligation enforceable against the Placement Agent in accordance with its terms.

 

(iii)        The
execution and delivery of this Agreement, the observance and performance hereof and the consummation of the transactions contemplated
hereby and by the Memorandum do not and will not result in any breach of, or default under, any instrument or agreement by which
the Placement Agent is bound or violate any law or order directed to the Placement Agent of any court or any federal or state regulatory
body or administrative agency having jurisdiction over the Placement Agent or over its property.

 

(iv)        The
Placement Agent is duly registered as a broker-dealer with the Securities and Exchange Commission (the “Commission”)
pursuant to the Exchange Act, and no proceeding has been initiated to revoke any of such registrations; the Placement Agent is
a member in good standing of FINRA; the Placement Agent is duly registered as a broker-dealer under the applicable statutes, if
any, in each state in which the Placement Agent proposes to offer or sell the Securities where such registration is required; the
Placement Agent shall be responsible for payment of compensation owed to any sub-agent, if any, which sub-agent, if any, must be
a member in good standing of FINRA and registered in each state where Qualified Investors identified by such sub-agent reside.

 

(v)         The
Placement Agent shall maintain all broker-dealer registrations, referred to above in paragraph (iv), throughout the period in which
Securities are offered and sold; the Placement Agent has complied and will comply with all broker-dealer requirements applicable
to this transaction; the Placement Agent is not in violation of any order of any court or regulatory authority applicable to it
with respect to the sale of the Securities.

 

(vi)        Pursuant
to the Placement Agent's appointment made herein, the Placement Agent will conduct the Financing in compliance with the requirements
of Regulation D and or Regulation S and, in this regard, the Placement Agent will have during the course of the Financing, and
to the extent any representations other than those set forth in the Memorandum are made, refrained from making any untrue statement
of a material fact and not have omitted to state a material fact required to be stated or necessary to make any statement made
not misleading concerning the Financing or any matters set forth in or contemplated by the Memorandum. The Placement Agent will
have refrained from offering for sale or selling the Units by means of: (a) any advertisement or other communication mentioning
the Units published in any newspaper, magazine or similar medium or broadcast over television or radio; or (b) any seminar or meeting
announced by means of any kind of general solicitation or general advertising; or (c) any letter, circular, notice or other written
communication, unless the Placement Agent has reasonable grounds to believe and, in fact, does believe that each person to whom
the communication is directed is qualified pursuant to the financial suitability requirements set forth in the Memorandum and the
communication is accompanied or preceded by the Memorandum or contains an undertaking to provide the Memorandum upon request. Prior
to the sale of any of the Units, the Placement Agent will have reasonably believed and have a reasonable basis and evidence to
believe that each subscriber and his duly appointed purchaser representative, if any, met the suitability and other investor standards
set forth in the Memorandum, and the Placement Agent will maintain appropriate records substantiating the foregoing. In the event
that the Placement Agent utilized any sales materials other than the Memorandum, the Placement Agent will have refrained from providing
any such materials to any offeree of the Units or his purchaser representative unless such materials are accompanied or preceded
by the Memorandum and were permitted for use in connection with the Financing under applicable federal and state securities laws
and not represented in any such materials or otherwise that any such materials have been approved or authorized by the Company.
The Placement Agent will have provided each offeree with a copy of the Memorandum and the exhibits thereto during the course of
the Financing. Until the final Closing Date, if any event affecting the Company or the Placement Agent should occur that the Company
or its counsel, or the Placement Agent or its counsel, believe should be set forth in a supplement or amendment to the Memorandum,
the Placement Agent will have promptly distributed such supplement or amendment to persons who have previously received a copy
of the Memorandum from the Placement Agent and who continue to be interested in the Financing and further included such supplement
or amendment in all further deliveries of the Memorandum. The Company shall at its own expense prepare and furnish the Placement
Agent with a reasonable number of copies of such supplement or amendment for such distribution; however, such distribution may,
at the Placement Agent’s discretion, be made electronically in lieu of physical delivery of the Offering Materials. During
the course of the Financing, the Placement Agent will have accounted for each copy of the Memorandum distributed during the course
of the Financing by maintaining a record of each person to whom it has delivered a copy of the Memorandum and any amendment or
supplement thereof.

 

    	 	7	 

     

    

 

(vii)       Neither
the Placement Agent nor any of its representatives is authorized to make any representation on behalf of the Company other than
those contained in the Memorandum or any additional information provided by the Company nor is the Placement Agent or any of its
representatives authorized to act as the agent or representative of the Company in any capacity, except as expressly set forth
herein.

 

(viii)      In
the event that, on or before any Closing Date, the Placement Agent becomes aware of any false statement of a fact or representation
by any subscriber in the Memorandum, the Placement Agent shall promptly inform the Company of such false statement of fact, unless
at the time it becomes aware of such false statement the subscriber has communicated to the Placement Agent or the Company its
intent to correct such false statement prior to the Closing Date.

 

(ix)         The
Placement Agent and each of its registered representative’s participation in its solicitation efforts will comply with the
prohibition against “general solicitations” and “general advertising” imposed by Rule 502(c) of Regulation
D.

 

(x)          The
Placement Agent shall inform the Company of each date on which it first receives any subscription from prospective investors in
each state where the Units are offered and shall not offer the Units for sale in any state in which the offer or sale requires
prior notice or clearance from any state securities commission, bureau or agency thereon.

 

6.     Indemnification.

 

(a)   The
Company agrees to indemnify and hold harmless each Placement Agent, its officers, directors, employees, agents, legal counsel and
any of its affiliates (each, a “Placement Agent’s Indemnified Party”) against any and all losses, claims,
damages, liabilities, joint or several, and expenses (including all legal or other expenses reasonably incurred by a Placement
Agent’s Indemnified Party) caused by or arising out of any misrepresentation or untrue statement or alleged misrepresentation
or untrue statement of a material fact contained in the Memorandum or any other document furnished by the Company to the Placement
Agent for delivery to or review by the Qualified Investors, or the omission or the alleged omission to state in such documents
furnished to the Qualified Investors a material fact necessary in order to make the statements therein not misleading in light
of the circumstances under which they were made, to the extent such misstatements or omissions are made in reliance upon and in
conformity with written information furnished by the Company for use in the documents furnished to the Qualified Investors, including
the Memorandum (except to the extent such misrepresentations, untrue statements or omissions are based on information provided
to the Company by the Placement Agent). The Company agrees to reimburse the Placement Agent’s Indemnified Party for any reasonable
expenses (including reasonable fees and expenses of counsel) incurred as a result of producing documents, presenting testimony
or evidence, or preparing to present testimony or evidence (based upon time expended by the Placement Agent’s Indemnified
Party at its then current time charges or if such person shall have no established time charges, then based upon reasonable charges),
in connection with any court or administrative proceeding (including any investigation which may be preliminary thereto) arising
out of or relating to the performance by the Placement Agent’s Indemnified Party of any obligation hereunder and relating
to a matter for which the Company must provide indemnity to or hold harmless such Placement Agent’s Indemnified Party pursuant
to the provisions of this subsection 6(a). In the event the Company shall be obligated to indemnify a Placement Agent’s Indemnified
Party in connection with any such proceeding, the Company shall be entitled to assume the defense of such proceeding, with counsel
approved by the Placement Agent’s Indemnified Party (which shall not be unreasonably withheld), upon the delivery to the
Placement Agent’s Indemnified Party of written notice of the Company’s election to do so.

 

    	 	8	 

     

    

 

(b)   The
Placement Agent agrees to indemnify and hold harmless the Company, its officers, directors, employees, agents, legal counsel and
its affiliates (each, a “Company Indemnified Party”) against any and all losses, claims, damages and liabilities,
joint or several, and expenses (including all legal or other expenses reasonably incurred by a Company Indemnified Party) caused
by or arising out of any misrepresentation or untrue statement or alleged misrepresentation or untrue statement of a material fact
made by the Placement Agent to the Qualified Investors, or the Placement Agent’s omission or the alleged omission to state
to the Qualified Investors a material fact necessary in order to make statements made not misleading in light of the circumstances
under which they were made (except to the extent such misrepresentations, untrue statements or omissions are based on information
provided to the Placement Agent by the Company, including the Memorandum or any other document furnished by the Company to the
Placement Agent for delivery to or review by the Qualified Investors), in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged omission was made in the Memorandum or other document
furnished to the Placement Agent for delivery to or review by the Qualified Investors, in reliance upon and in conformity with
written information furnished to the Company by the Placement Agent expressly for use therein. The Placement Agent agrees to reimburse
the Company Indemnified Party for any reasonable expenses (including reasonable fees and expenses of counsel) incurred as a result
of producing documents, presenting testimony or evidence, or preparing to present testimony or evidence (based upon time expended
by the Company Indemnified Party at its then current time charges or if such person shall have no established time charges, then
based upon reasonable charges), in connection with any court or administrative proceeding (including any investigation which may
be preliminary thereto) arising out of or relating to the performance by the Company Indemnified Party of any obligation hereunder
and relating to a matter for which the Company must provide indemnity to or hold harmless such Company Indemnified Party pursuant
to the provisions of this subsection 6(b). The Placement Agent’s obligations under this Section 6(b) shall be limited to
the net amount of Cash Fees paid or payable by the Company to the Placement Agent, other than in the case of fraud, intentional
misrepresentation or willful breach. In the event the Placement Agent shall be obligated to indemnify a Company Indemnified Party
in connection with any such proceeding, the Placement Agent shall be entitled to assume the defense of such proceeding, with counsel
approved by the Company Indemnified Party (which shall not be unreasonably withheld), upon the delivery to the Company Indemnified
Party of written notice of the Placement Agent’s election to do so.

 

(c)   In
order to provide for just and equitable contribution under the Securities Act in any case in which (i) any person entitled to indemnification
under this Section 6 makes claim for indemnification pursuant hereto but it is judicially determined (by the entry of a final judgment
or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal)
that such indemnification may not be enforced in such case notwithstanding the fact that this Section 6 provides for indemnification
in such case, or (ii) contribution under the Securities Act may be required on the part of any such person in circumstances for
which indemnification is provided under this Section 6, then, and in each such case, the Company and the Placement Agent shall
contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after any contribution from others)
in such proportion so that the Placement Agent is responsible for the proportion that the amount of commissions appearing in the
Memorandum bears to the price appearing therein, and the Company is responsible for the remaining portion; provided, that,
in any such case, no person guilty of a fraudulent misrepresentation or omission (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

    	 	9	 

     

    

 

(d)   The
respective indemnity agreements between the Placement Agent and the Company contained in Sections 6(a) and (b) of this Agreement,
and the representations and warranties of the Company set forth in Section 5(b) or elsewhere in this Agreement, shall remain operative
and in full force and effect, regardless of any investigation made by or on behalf of the Placement Agent or by or on behalf of
any controlling person of the Placement Agent or the Company or any such officer or director or any controlling person of the Company,
and shall survive the delivery of the Units, and any successor of the Company, and the Placement Agent, or of any controlling person
of the Placement Agent, as the case may be, shall be entitled to the benefit of the respective indemnity agreements. The representations
and warranties in Section 5 of this Agreement (but not the indemnities contained in Section 6 hereof) shall terminate six months
after the final Closing under this Agreement.

 

7.     Covenants

 

(a)          The
Company covenants with the Placement Agent as follows:

 

(i)          The
Company will provide the Placement Agent with copies of its “bad actor” questionnaire completed and executed by itself,
its officers, directors and holders of 20% or more of its outstanding securities prior to the Financing;

 

(ii)         The
Company will notify the Placement Agent promptly, and confirm the notice in writing, of the initiation by the Commission or any
state securities commission of any proceeding against the Company.

 

(iii)        The
Company will give the Placement Agent notice of its intention to amend or supplement the Memorandum.

 

(iv)        If
any event shall occur as a result of which it is necessary, in the reasonable opinion of both the Placement Agent and the Company,
to amend or supplement the Memorandum in order to make the Memorandum not misleading in the light of the circumstances existing
at the time it is delivered to a purchaser, the Company will forthwith amend or supplement the Memorandum by preparing and furnishing
to the Placement Agent a reasonable number of copies of an amendment or amendments of, or a supplement or supplements to (or electronic
versions thereof in lieu of physical copies, if the Placement Agent so directs), the Memorandum in form and substance satisfactory
to the Placement Agent, so that, as so amended or supplemented, the Memorandum will not contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing
at the time it is delivered to a purchaser, not misleading.

 

(v)         The
Company will endeavor, in cooperation with the Placement Agent, to qualify or perfect an exemption for the Units for offering and
sale under the applicable securities laws of such states and other jurisdictions of the United States as the Placement Agent and
the Company agree to offer and sell the Units, and will maintain such qualifications in effect for so long as may be required for
the distribution of the Units.

 

    	 	10	 

     

    

 

(vi)        The
Company will apply the net proceeds from the sale of the Units sold by it hereunder substantially as contemplated by the Memorandum.

 

(vii)       The
Company will comply with the prohibition against general advertising and general solicitations imposed by Rule 502(c) of Regulation
D.

 

(viii)      The
Company shall not initiate communication directly with any of the Placement Agent’s brokers or known clients (until such
time as such clients are stockholders of the Company) without the prior consent of the Placement Agent. The provisions of this
Section 7(a) shall not apply to clients of the Placement Agent who are also stockholders of the Company

 

(b)          The
Placement Agent covenants and agrees that:

 

(i)          It
will not give any information or make any representation in connection with the offering of Units that is not contained in the
Memorandum or such other material as may be provided by the Company for use in connection with the Financing.

 

(ii)         In
communicating any offer of Units, the Placement Agent agrees that it will comply with the provisions of the Securities Act and
the Exchange Act and the securities laws of each state, and that it and its authorized agents will offer to sell, or solicit offers
to subscribe for or buy, the Units only in those states and other jurisdictions in the United States in which such solicitations
can be made in accordance with an applicable exemption from registration or qualification and in which the Placement Agent is qualified
to so act. Nothing contained herein shall limit the Placement Agent from offering to sell the Units outside the United States.

 

8.     Conditions
to Parties’ Obligation to Close.

 

(a)          The
obligations of the Placement Agent hereunder are subject to the performance by the Company of its obligations hereunder, to the
condition that during the Term, no proceedings shall be initiated or threatened by the Commission or any state securities commission
or similar body against the Company and to the following additional conditions:

 

(i)          The
Placement Agent shall not have disclosed in writing to the Company that the Memorandum or any amendment or supplement thereto contains
an untrue statement of a fact which is material, or omits to state a fact which is material and is required to be stated therein,
or is necessary to make the statements therein, in light of the circumstances under which they are made, not misleading.

 

(ii)         Between
the date hereof and each Closing Date, the Company shall not have sustained any loss on account of fire, explosion, flood, accident,
calamity or other cause, of such character as materially adversely affects its business or property, whether or not such loss is
covered by insurance.

 

(iii)        Between
the date hereof and each Closing Date, except as disclosed in or contemplated by the Memorandum, there shall be no material litigation
instituted or threatened against the Company and there shall be no proceeding instituted or threatened against the Company before
or by any federal or state commission, regulatory body or administrative agency or other governmental body, domestic or foreign,
wherein an unfavorable ruling, decision or finding would materially adversely affect the business, franchises, licenses, permits,
operations or financial condition or operating results of the Company.

 

    	 	11	 

     

    

 

(iv)        Except
as contemplated herein or as set forth in or contemplated by the Memorandum or supplement or amendment thereto, during the period
subsequent to the date of the Memorandum and prior to each Closing Date, (i) the Company (A) shall have conducted its business
in all material respects in the usual and ordinary manner as the same was being conducted on the date of the filing of the Memorandum,
and (B) except in the ordinary course of its business, the Company shall not have incurred any material liabilities or obligations
(direct or contingent), or disposed of any of its material assets, or entered into any material transaction or suffered or experienced
any substantially adverse change in its condition, financial or otherwise.

 

(v)         The
authorization of the Units, the underlying shares of Common Stock and Warrants, the Placement Agent Warrants and underlying shares
of Common Stock issuable upon exercise of the Warrants and Placement Agent Warrants, the Memorandum and all corporate proceedings
and other legal matters incident thereto and to this Agreement, shall be reasonably satisfactory to the Placement Agent and shall
have been completed.

 

(vi)        Upon
the express request of the Placement Agent, the Company shall have furnished to the Placement Agent a certificate of the Chief
Executive Officer and Chief Financial Officer of the Company, dated as of each Closing Date, to the effect that:

 

(A)         The
representations and warranties of the Company in this Agreement are true and correct in all material respects at and as of such
Closing Date, and the Company has complied in all material respects with all the agreements and satisfied all the conditions on
its part to be performed or satisfied at or prior to the Closing Date;

 

(B)         The
respective officers have each carefully examined the Memorandum and any amendments and supplements thereto, and to the best of
their knowledge the Memorandum and any amendments and supplements thereto and all statements contained therein are true and correct
in all material respects, and neither the Memorandum nor any amendment or supplement thereto includes any untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they are made, not misleading and, since the effective date of the Memorandum, there has
occurred no event required to be set forth in an amended or supplemented Memorandum which has not been so set forth.

 

(C)         Except
as set forth in or contemplated by the Memorandum since the respective dates as of which or periods for which information is given
in the Memorandum and prior to the date of such certificate (1) there has not been any material adverse change, financial or otherwise,
in the affairs or condition of the Company and (2) the Company has not incurred any material liabilities, direct or contingent,
or entered into any material transactions, otherwise than in the ordinary course of business.

 

(vii)       Upon
the express request of the Placement Agent, the Company shall have furnished to the Placement Agent at each Closing Date, such
other certificates and/or additional customary closing documents, as the Placement Agent may have reasonably requested as to (A)
the accuracy and completeness, in all material respects, of (i) any statement in the Memorandum, or in any amendment or supplement
thereto; or (ii) the representations and warranties of the Company herein; (B) the performance by the Company in all material respects
of its obligations hereunder, or (C) the fulfillment of the conditions concurrent and precedent to its obligations hereunder, which
are required to be performed or fulfilled on or prior to each Closing Date.

 

All the letters, certificates
and evidence mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only
if they are in form and substance reasonably satisfactory to the Placement Agent, whose approval shall not be unreasonably withheld.
The Placement Agent reserves the right to waive any of the conditions herein set forth. If a condition specified in this Section
shall not have been fulfilled in any material respect when and as required to be fulfilled, this Agreement may be terminated by
the Placement Agent by written notice to the Company at any time at or prior to the Closing, and such termination shall be without
liability of any party to any other party except as provided in Section 2.

 

    	 	12	 

     

    

 

(b)          The
obligations of the Company shall be subject to the continuing accuracy throughout the Term of the representations, warranties,
covenants and agreements contained in Sections 5 and 7 hereof and to the performance by the Placement Agent of its obligations
hereunder.

 

9.    Investors’
Registration Rights.

 

(a)          No
later than six months following (i) the closing of the Company’s initial public offering in which its securities are listed
for trading on Nasdaq or such other stock exchange in the United States as the Company may select or (ii) the commencement of trading
of the Company’s Common Stock in the over-the-counter market, whichever first occurs, the Company shall prepare for filing
with the Commission a Form S-1 Registration Statement to register the resale of all of the Common Stock underlying the Units sold
in the Financing and the shares of Common Stock issuable upon exercise thereof and all shares of Common Stock issuable upon exercise
of the Placement Agent Warrants, including the shares issuable upon exercise of the underlying Warrant component of the Units (the
“Registrable Securities”) described herein (the “Registration Statement”) and use
its reasonable best efforts to obtain effectiveness of the Registration Statement as soon as practicable thereafter. Upon effectiveness,
the Company will seek to maintain a current Registration Statement for a period of at least two years or until all Purchasers may
freely sell the Registrable Securities without registration, whichever event occurs first. The Company shall be responsible for
all costs incurred in connection with filing said Registration Statement, except that each seller shall be responsible for all
its own personal legal and other professional fees incurred, as well as sales commissions and other costs of sale. Notwithstanding
the registration obligation set forth in this Section 9(a), in the event the Commission or the Company’s legal counsel advises
the Company that all of the securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary
offering on a single registration statement, the Company agrees to promptly (i) inform the holders of the Registrable Securities
and use its commercially reasonable efforts to file such amendments to the initial registration statement (the “Initial
Registration Statement”) as may be required by the Commission and/or (ii) withdraw the Initial Registration Statement
and file a new registration statement (a “New Registration Statement”), in either case covering the maximum
number of Registrable Securities permitted to be registered by the Commission on Form S-1 (or on such other form available
to register the Securities for resale as a secondary offering). Notwithstanding any other provision of this Agreement, if
any guidance published or otherwise issued by the Commission sets forth a limitation of the number of securities permitted to be
registered on a particular Registration Statement as a secondary offering, or in the event the Commission Staff seeks to characterize
any offering pursuant to a Registration Statement filed pursuant to this Section 9 as constituting an offering of securities by
or on behalf of the Company such that (x) Rule 415 is not available to the Company to register the resale of such securities and
(y) as a result, the Commission does not permit the Initial Registration Statement to become effective and be used for resales
in a manner that permits the continuous resale at the market (or as otherwise may be acceptable to each holder) without being named
therein as an “underwriter,” unless otherwise directed in writing by each holder as to its Registrable Securities,
the number of Registrable Securities to be registered on behalf of the selling stockholders on such Initial Registration Statement
will be reduced on a pro rata basis, taking into account all of the securities of the selling stockholders included in the
Initial Registration Statement (including securities that are not sold in the Financing, if any). In the event the Company amends
the Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (i) or (ii) above,
the Company will use its commercially reasonable efforts to file with the Commission, as promptly as allowed by Commission or Commission
guidance provided to the Company or registrants of securities in general, one or more registration statements on Form S-1 or such
other form available to register for resale those securities that were not registered for resale on the Initial Registration Statement,
as amended, or the New Registration Statement.

 

    	 	13	 

     

    

 

(b)          The
foregoing provisions and other customary terms and conditions relating to registration rights shall be incorporated into a registration
rights agreement to be executed by the Purchasers and the Company.

 

10.     Confidentiality.
Except in keeping with its obligations under this Agreement, the Placement Agent will maintain in confidence and will use only
for the purpose of fulfilling its obligations hereunder and will not use for its own benefit any inventions, confidential know-how,
trade secrets, financial information and other non-public information and data disclosed to it by the Company, and it will not
divulge the same to any other persons until such time as the information becomes a matter of public knowledge. The Placement Agent
will use its best efforts to prevent any unauthorized disclosure described above by others. This Section 10 will survive expiration
or termination of this Agreement indefinitely.

 

11.     Expenses
of the Financing.

 

(a)          The
Company shall pay the Placement Agent the Expense Allowance or the accountable expense reimbursement described in Section 2 above,
whichever is applicable.

 

(b)          The
Company shall pay all of its expenses incident to the performance of its obligations under this Agreement including but not limited
to its legal and accounting fees and shall be responsible for payment of all federal, state “blue sky” and other filings
pertaining to the Financing.

 

(c)          Section
9 of this Agreement contains certain registration rights provided to the Purchasers and the Placement Agent. The Company shall
also be responsible for all costs pertaining to the filing of the Form S-1 Registration Statement to register the resale of the
Registrable Securities, including the shares underlying the Placement Agent Warrants in accordance with the terms set forth in
Section 9 herein. In this respect, the Company shall also be responsible to pay FINRA the filing fees that are required in connection
with the Placement Agent providing the Registration Statement and amendments thereto to FINRA. It is agreed that the Company shall
not request acceleration of effectiveness of the S-1 Registration Statement without the Placement Agent first receiving said “no
objection” letter, if such a letter is required by FINRA under the circumstances of the filing.

 

12.     Independent
Contractor. The Placement Agent will perform its services hereunder as an independent contractor, and nothing in this Agreement
will in any way be construed to constitute the Placement Agent the agent, employee or representative of the Company. Neither the
Placement Agent nor any agent acting on behalf of the Placement Agent will enter into any agreement or incur any obligations on
the Company’s behalf or commit the Company in any manner or make any representations, warranties or promises on the Company’s
behalf or hold itself (or allow itself to be held) as having any authority whatsoever to bind the Company without the Company’s
prior written consent, or attempt to do any of the foregoing.

 

13.     Subsequent
Offerings. The Company agrees that in the event that it plans to engage a placement agent in connection with a financing
transaction involving the offer and sale of its equity or debt securities within 12 months of consummation of the Financing and
if the Company raises at least $3,000,000 in the Financing from investors first introduced to it by the Placement Agent (a “Subsequent
Offering”), the Placement Agent will have a right of first refusal to be the exclusive Placement Agent or managing underwriter
for such offering. In such case, the Company shall offer in writing to the Placement Agent the opportunity to act as exclusive
Placement Agent or managing underwriter for the Subsequent Offering, and such offer will remain open for 15 calendar days, at which
time it will have been deemed to have been rejected by the Placement Agent if not accepted in writing prior to the expiration of
such period.

 

    	 	14	 

     

    

 

14.     Participation
of the Placement Agent in the Financing. The Placement Agent, its affiliates and/or its employees may purchase Units in
the Financing, provided, that in no event may the Placement Agent, its affiliates or its employees subscribe to purchase
Units until the minimum offering (as set forth in the Memorandum) has been subscribed and accepted by the Company. In the event
of any such purchase, the Placement Agent shall be entitled to the compensation it would otherwise receive if such purchase had
been made by any other investor.

 

15.     General.

 

(a)          Reimbursement.
If any future financial dispute, discrepancy or controversy arises between or among the Company, its stockholders and/or the Placement
Agent and results in the Placement Agent causing an audit or accounting of the Company’s books and records, the Company shall
reimburse the Placement Agent for the reasonable and documented expenses relating to such audit or accounting.

 

(b)          Arbitration.
The parties hereto agree that any dispute or controversy arising out of, relating to or concerning any interpretation, construction,
performance or breach of this Agreement, shall be subject to the laws of the State of Oregon without giving effect to its conflicts
of laws provisions. Any disputes will be settled in binding arbitration in Portland, Oregon under the auspices of FINRA dispute
resolution. The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator
will be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision
in any court having jurisdiction. The Company and the Placement Agent shall each pay one-half of the costs and expenses of such
arbitration, and each shall separately pay its counsel fees and expenses.

 

(c)          Covenant
against Assignment. This Agreement is personal to the parties hereto, and accordingly, except for the right to enforce the
obligations under Sections 6 and 7 hereunder (which right shall inure to the benefit of the successors and assigns of the aggrieved
party), neither this Agreement nor any right hereunder or interest herein may be assigned or transferred or charged by either party
without the express written consent of the other. The foregoing notwithstanding, the parties hereto expect that QPagos will merge
into a newly-created private U.S. corporation prior to the closing of the Financing, and it is the intention of the parties hereto
that this Agreement shall be assigned to such newly-created entity and its terms and conditions shall be binding upon and enforceable
against such newly-created entity.

 

(d)          Entire
Agreement; Amendment. This Agreement and the attached exhibits constitute the entire contract between the parties with respect
to the subject matter hereof and supersede any prior agreements between the parties. This Agreement may not be amended, nor may
any obligation hereunder be waived, except by an agreement in writing executed by, in the case of an amendment, each of the parties
hereto, and, in the case of a waiver, by the party waiving performance.

 

(e)          No
Waiver. The failure or delay by a party to enforce any provision of this Agreement will not in any way be construed as a waiver
of any such provision or prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted
the parties hereunder are cumulative and will not constitute a waiver of either party’s right to assert any other legal remedy
available to it.

 

    	 	15	 

     

    

 

(f)          Severability.
Should any provision of this Agreement be found to be illegal or unenforceable, the other provisions will nevertheless remain effective
and will remain enforceable to the greatest extent permitted by law.

 

(g)          Notices.
Any notice, demand, offer, request or other communication required or permitted to be given by either the Company or the Placement
Agent pursuant to the terms of this Agreement must be in writing and will be deemed effectively given the earlier of (i) when
received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile (with receipt of
appropriate confirmation) to the number provided to the other party or such other number as a party may request by notifying the
other in writing, (iv) one business day after being deposited with an overnight courier service or (v) four days after
being deposited in the U.S. mail, First Class with postage prepaid, and addressed to the party at the address previously provided
to the other party or such other address as a party may request by notifying the other in writing.

 

(h)          Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together
will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding originals.

 

    	 	16	 

     

    

 

The parties have executed
this Placement Agent Agreement as of the date first written above.

 

	 	QPAGOS, S.A.P.I. DE C.V.
	 	 
	 	By:	/s/ Gaston Pereira 
	 	 	Gaston Pereira
	 	 	Chief Executive Officer
	 	 
	 	PAULSON INVESTMENT COMPANY, LLC
	 	 
	 	By:	/s/ Lorraine Maxfield 
	 	 	Lorraine Maxfield, CFA
	 	 	Senior Vice President, Corporate Finance

 

Signature
Page to Placement Agent Agreement

 

    	 	17

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