Document:

Exhibit 4.1

 

THE SECURITIES EVIDENCED BY THIS WARRANT
AGREEMENT AND THE UNDERLYING SHARES OF COMMON STOCK HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE COMPANY
RECEIVES AN OPINION OF COUNSEL FOR THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

	Warrant No. N -____	Number of Shares: ________
		(subject to adjustment)
	Date of Issuance: December___, 2015	 

 

ELEPHANT TALK COMMUNICATIONS CORP.

 

Common Stock Warrant

 

Elephant Talk Communications
Corp. (the “Company”), for value received, hereby certifies that _______________ or its registered
assigns (the “Registered Holder”), is entitled, subject to the terms of this Common Stock Warrant (the
“Warrant”) set forth below, to purchase from the Company, at any time after the date hereof and on or
before five (5) years from date of issue (the “Expiration Date”), up to _________ shares (as adjusted from time
to time pursuant to the provisions of this Warrant) of common stock of the Company, no par value per share (the “Common
Stock”), at a per share exercise price (the “Exercise Price”) equal to Forty-Five Cents ($.45) (subject
to adjustment as set forth in Section 2) pursuant to that certain Private Placement Memorandum dated December 2, 2015, as amended
or supplemented from time to time (the “Memorandum”). This Warrant is one of a series of warrants of like tenor
that are being issued in connection with the Company’s private offering to select, accredited investors of units. Each unit
is comprised of (a) One (1) 9% convertible promissory note (the “Notes”) in the principal amount of $30,000,
which shall be convertible into shares (the “Note Shares”) of Common Stock of the Company, $.00001 par value,
(the “Common Stock”) at a conversion price of $.30 per share and (b) a five-year warrant (“Warrant”)
to purchase One Hundred Thousand (100,000) shares of our Common Stock (the “Warrant Shares”), at the Exercise
Price. Capitalized terms used herein but not defined herein shall have the meaning ascribed to it in the Memorandum

 

1.          Exercise.

 

(a)          Method
of Exercise. This Warrant may be exercised by the Registered Holder, in whole or in part, by surrendering this Warrant,
with the form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered Holder’s
duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate
in writing prior to the date of such exercise, accompanied by payment in full of the Exercise Price payable with respect to the
number of shares of Warrant Shares purchased upon such exercise. The Exercise Price must be paid by cash, check or wire transfer
in immediately available funds or, where permitted by law and provided that a public market for the Common Stock exists, through
a "same day sale" commitment from the Warrant Holder and a broker-dealer that is a member of the Financial Industry Regulatory
Authority of Securities Dealers (a "FINRA Dealer"), whereby the Registered Holder irrevocably elects to
exercise this Warrant and to sell a portion of the Warrant Shares so purchased to pay for the Exercise Price and whereby the FINRA
Dealer irrevocably commits upon receipt of such Warrant Shares to forward the Exercise Price directly to the Company.

 

    	 	- 1 -	 

     

    

 

(b)          Effective
Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of
business on the day on which this Warrant shall have been surrendered to the Company (the “Exercise Date”)
as provided in this Section 1. At such time, the person or persons in whose name or names any certificates for Warrant Shares shall
be issuable upon such exercise as provided in Section 1(c) below shall be deemed to have become the holder or holders of record
of the Warrant Shares represented by such certificates.

 

(c)          Delivery
to Holder. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within five
(5) business days thereafter (the “Warrant Shares Delivery Date”), the Company at its expense will cause
to be issued in the name of, and delivered to, the Registered Holder, or as such Registered Holder (upon payment by such Registered
Holder of any applicable transfer taxes) may direct:

 

(i)          a
certificate or certificates for the number of shares of Warrant Shares to which such Registered Holder shall be entitled, and

 

(ii)         in
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on
the face or faces thereof for the number of shares of Warrant Shares equal (giving effect to any adjustment therein) to the number
of such shares called for on the face of this Warrant minus the number of such shares purchased by the Registered Holder upon such
exercise as provided in Section 1(a).

 

(d) Limitations
on Exercises. 

 

(i)                                    Beneficial
Ownership. Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the
Registered Holder hereof to the extent (but only to the extent) that the Registered Holder or any of its affiliates would beneficially
own in excess of 9.9% (the “Maximum Percentage”) of the Common Stock. To the extent the above limitation
applies, the determination of whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable
securities owned by the Registered Holder or any of its affiliates) and of which such securities shall be exercisable (as among
all such securities owned by the Registered Holder) shall, subject to such Maximum Percentage limitation, be determined on the
basis of the first submission to the Company for, exercise. No prior inability to exercise this Warrant pursuant to this paragraph
shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination
of exercisability. For the purposes of this paragraph, beneficial ownership and all determinations and calculations (including,
without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d)
of the Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder. The provisions of this
paragraph shall be implemented in a manner otherwise than in strict conformity with the terms of this paragraph to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership
limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage
limitation. The limitations contained in this paragraph shall apply to a successor Holder of this Warrant. The holders of Common
Stock shall be third party beneficiaries of this paragraph. For any reason at any time, upon the written or oral request of the
Registered Holder, the Company shall within one (1) Business Day confirm orally and in writing to the Registered Holder the number
of shares of Common Stock then outstanding, including by virtue of any prior conversion or exercise of convertible or exercisable
securities into Common Stock, including, without limitation, pursuant to this Warrant or securities issued pursuant to the Securities
Purchase Agreement.

 

    	 	- 2 -	 

     

    

 

(ii)         Principal
Market Regulation. In order to comply with the rules and regulations of the NYSE MKT, LLC (the “Principal Market”),
the Company shall not issue any shares of Common Stock upon exercise of this Warrant if the issuance of such shares of Common Stock
would, when added to the number of Note Shares issued upon conversion of the Note, exceed 32,324,4561 shares of Common
Stock in the aggregate (the “Exchange Cap”), based upon the total issued and outstanding number of shares of
common stock as of the preceding trading day of the Issuance Date, except that such limitation shall not apply in the event that
the Company obtains the approval of its stockholders as required by the applicable rules of the Principal Market for issuances
of shares of Common Stock in excess of such amount. For so long as the Exchange Cap is applicable, no Registered Holder shall be
issued in the aggregate, upon exercise of any Warrants, shares of Common Stock in an amount greater than the product of (i) the
Exchange Cap multiplied by (ii) the quotient of (1) the Purchase Price paid by such Registered Holder pursuant to the Subscription
Agreement divided by (2) the Purchase Price paid by all Registered Holders pursuant to the Securities Purchase Agreement (with
respect to each Registered Holder, the “Exchange Cap Allocation”). In the event that any Registered Holder shall
sell or otherwise transfer any of such Registered Holder’s Warrants, the transferee shall be allocated a pro rata portion
of such Registered Holder’s Exchange Cap Allocation with respect to such portion of such Warrants so transferred, and the
restrictions in this Section 1(d)(ii) shall apply to such transferee with respect to the portion of the Exchange Cap Allocation
so allocated to such transferee. Upon exercise in full of a holder’s Warrants, the difference (if any) between such
holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder upon such holder's
exercise in full of such Warrants shall be allocated to the respective Exchange Cap Allocations of the remaining holders of Warrants
on a pro rata basis in proportion to the shares of Common Stock underlying the Warrants then held by each such holder.

 

 

 

1
Such number represents 20% of total issued and outstanding shares of Common Stock as of December 2, 2015 minus one
share.

 

    	 	- 3 -	 

     

    

 

(e)          Cashless
Exercise. If at any time after six months from the issuance date of this Warrant, a registration statement registering the resale
of the Warrant Shares is not then effective, this Warrant may also be exercised, in whole or in part, at such time by means of
a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares
equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) =
the closing price of the Common Stock on the trading day immediately preceding the date on which Holder elects to exercise this
Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

(B) =
the Exercise Price of this Warrant, as adjusted hereunder; and

(X) = the number of Warrant Shares
that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means
of a cash exercise rather than a cashless exercise.

 

2.          Adjustments.

 

(a)          Stock
Splits and Dividends. If the outstanding shares of the Company’s Common Stock shall be subdivided into a greater number
of shares or a dividend in Common Stock shall be paid in respect of Common Stock, the Exercise Price in effect immediately prior
to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately
after the record date of such dividend be proportionately reduced. If outstanding shares of Common Stock shall be combined into
a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall, simultaneously with the effectiveness
of such combination, be proportionately increased. When any adjustment is required to be made in the Exercise Price, the number
of shares of Warrant Shares purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing
(i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment,
multiplied by the Exercise Price in effect immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately
after such adjustment.

 

(b)          Merger
Sale, Reclassification, Etc. In case of any (i) consolidation or merger (including a merger in which the Company is
the surviving entity), (ii) sale or other disposition of all or substantially all of the Company’s assets or distribution
of property to shareholders (other than distributions payable out of earnings or retained earnings), or reclassification, change
or conversion of the outstanding securities of the Company or of any reorganization of the Company (or any other corporation the
stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization
on or after the date hereof, then and in each such case the holder of this Warrant, upon the exercise hereof at any time thereafter
shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to
such consolidation, merger, sale or other disposition, reclassification, change, conversion or reorganization, the stock or other
securities or property to which such holder would have been entitled upon such consummation if such holder had exercised this Warrant
immediately prior thereto, all subject to further adjustment as provided in Section 2(a) or 2(b); and in each such case, the terms
of this Section 2 shall be applicable to the shares of stock or other securities properly receivable upon the exercise of
this Warrant after such consolidation, merger, sale or other disposition, reclassification, change, conversion or reorganization.

 

    	 	- 4 -	 

     

    

 

(c)          Subsequent
Equity Sales within first 24 Months of Issuance Date.  If, within 24 months after the Issuance Date while this Warrant
is outstanding, the Company sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes
of or issues (or announces any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents
entitling any person to acquire shares of Common Stock at an effective price per share that is lower than the then Exercise Price
(such lower price, the “Base Exercise Price” and such issuances, collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price
on such date of the Dilutive Issuance), then the Exercise Price shall be reduced to equal the Base Exercise
Price.  Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding
the foregoing, no adjustment will be made under this Section 2(c) in respect of an Exempt Issuance.   The Company shall notify
the Registered Holder in writing, no later than the trading day following the issuance of any Common Stock or Common Stock Equivalents
subject to this section, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion
price and other pricing terms (such notice, the “Dilutive Issuance Notice”).  For purposes of clarification,
whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 2c), upon the occurrence of any Dilutive
Issuance, the Registered Holder are entitled to receive a number of Conversion Shares based upon the Base Exercise Price on or
after the date of such Dilutive Issuance, regardless of whether a Holder accurately refers to the Base Exercise Price in the Notice
of Conversion.

 

“Common Stock Equivalents”
means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without
limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees, officers, directors or consultants of the Company pursuant
to any stock or option plan duly adopted by the Board of Directors, (b) securities upon the exercise or exchange of or conversion
of any securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common
Stock issued and outstanding on the Issuance Date, provided that such securities have not been amended since the Issuance Date
to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities
(other than in connection with stock splits or combinations) or to extend the term of such securities, (c) securities issued pursuant
to acquisitions or strategic transactions, provided that any such issuance shall only be to a person (or to the equityholders of
a person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic
with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but
shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an
entity whose primary business is investing in securities, and (d) restricted shares of Common Stock without any registration rights
issued in satisfaction of up to $200,000 in pre-Closing indebtedness and trade payables.

 

    	 	- 5 -	 

     

    

 

(d) Subsequent Equity
Sales within 12 months after first 24 Months of Issuance Date.  If, within 12 months after 24 months after the Issuance
Date while this Warrant is outstanding, in the event of the Dilutive Issuance, then the Exercise Price shall be reduced and only
reduced by multiplying the Exercise Price by a fraction, the numerator of which is the number of shares of Common Stock issued
and outstanding immediately prior to the Dilutive Issuance plus the number of shares of Common Stock which the offering price for
such Dilutive Issuance would purchase at the then Exercise Price, and the denominator of which shall be the sum of the number of
shares of Common Stock issued and outstanding immediately prior to the Dilutive Issuance plus the number of shares of Common Stock
so issued or issuable in connection with the Dilutive Issuance.

 

(e) Adjustment
Certificate. When any adjustment is required to be made in the Warrant Shares or the Exercise Price pursuant to this Section
2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts
requiring such adjustment, (ii) the Exercise Price after such adjustment and (iii) the kind and amount of stock or other
securities or property into which this Warrant shall be exercisable after such adjustment.

 

3.          [Intentionally
omitted]

 

4.          Transfers.

 

(a)          Unregistered
Security. The holder of this Warrant acknowledges that this Warrant and the Warrant Shares have not been registered under
the Securities Act and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or
any Warrant Shares issued upon its exercise in the absence of (i) an effective registration statement under the Securities
Act as to this Warrant or such Warrant Shares and registration or qualification of this Warrant or such Warrant Shares under any
applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel, reasonably satisfactory to the
Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Shares issued
upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect.

 

(b)          Transferability.
Subject to the provisions of Section 3(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part,
to (i) any entity controlling, controlled by or under common control of the Registered Holder, or (ii) to any other proposed transferee
by surrendering the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the principal office
of the Company.

 

    	 	- 6 -	 

     

    

 

(c)          Warrant
Register. The Company will maintain a register containing the names and addresses of the Registered Holder of this Warrant.
Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant
as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank,
the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding
any notice to the contrary. Any Registered Holder may change such Registered Holder’s address as shown on the warrant register
by written notice to the Company requesting such change.

 

5.          No
Impairment. The Company will not, by amendment of its certificate of incorporation or through reorganization, consolidation,
merger, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will (subject to Section 14 below) at all times in good faith assist in the carrying out of all
such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder
of this Warrant against impairment.

 

6.          Termination.
This Warrant (and the right to purchase securities upon exercise hereof) shall terminate on the Expiration Date.

 

7.          Notices
of Certain Transactions. In case:

 

(a)          the
Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise
of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any
right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, to
subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or

 

(b)          of
any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger
of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger
in which the Company is the surviving entity), or any transfer of all or substantially all of the assets of the Company, or

 

(c)          of
the voluntary or involuntary dissolution, liquidation or winding-up of the Company,

 

then, and in each such case, the Company
will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date
on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation,
merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the
holders of record of Common Stock (or such other stock or securities at the time deliverable upon such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up) are to be determined.

 

    	 	- 7 -	 

     

    

 

8.          Reservation
of Stock. The Company covenants that it shall at all times have authorized, reserve and keep available, solely for the
issuance and delivery upon the exercise of this Warrant, such shares of Warrant Shares and other stock, securities and property,
as from time to time shall be issuable upon the exercise of this Warrant. The Company covenants that all Warrant Shares that may
be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented
by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in
respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). The Company
further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty
of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant by the Registered Holder. The Company will take all such reasonable action as may be necessary
to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of
any requirements of the OTC Bulletin Board, exchange, trading market or other inter-dealer electronic quotation system upon which
the Common Stock may be listed.

 

9.          Exchange
of Warrants. Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed, to the Company
at the principal office of the Company, the Company will, subject to the provisions hereof, issue and deliver to or upon the order
of such Registered Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of such Registered
Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling
in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant
or Warrants so surrendered.

 

10.         Replacement
of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably
required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of
this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

 

11.         Notices.
Any notice required or permitted by this Warrant shall be in writing and shall be deemed duly given upon receipt, when delivered
personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the regular mail
as certified or registered mail (airmail if sent internationally) with postage prepaid, addressed (a) if to the Registered Holder,
to the address of the Registered Holder most recently furnished in writing to the Company and (b) if to the Company, to the address
set forth on the signature page of this Warrant or as subsequently modified by written notice to the Registered Holder.

 

    	 	- 8 -	 

     

    

 

12.         No
Rights as Stockholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise
any rights by virtue hereof as a stockholder of the Company.

 

13.         No
Fractional Shares. No fractional shares of Common Stock will be issued in connection with any exercise hereunder. In lieu
of any fractional shares which would otherwise be issuable, the Company shall round the amount of Warrant Shares issuable to the
nearest whole share.

 

14.         Amendment
or Waiver. Any term of this Warrant may be amended or waived upon written consent of the Company and the Registered Holder.

 

15.         Headings.
The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision
of this Warrant.

 

16.         Governing
Law. This Warrant and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles
of conflicts of law.

 

17.         Representations
and Covenants of the Registered Holder. This Warrant has been entered into by the Company in reliance upon the following
representations and covenants of the Registered Holder:

 

(a)          Investment
Purpose. The Registered Holder is acquiring the Warrant and the Common Stock issuable upon exercise of the Warrant for
its own account, not as a nominee or agent and with no present intention of selling or otherwise distributing any part thereof.

 

(b)          Private
Issue. The Registered Holder understands: (i) that neither the Warrant nor the Warrant Shares is, nor will be, registered
under the Securities Act or qualified under applicable state securities laws on the ground that the issuance contemplated by this
Warrant will be exempt from the registration and qualifications requirements thereof pursuant to Section 4(a) (2) of the Securities
Act and any applicable state securities laws, and (ii) that the Company’s reliance on such exemption is predicated on the
representations set forth in this Section 17.

 

    	 	- 9 -	 

     

    

 

(c)          Disposition
of Holder’s Rights. In no event will the Registered Holder make a disposition of the Warrant or the Common Stock
issuable upon exercise of the Warrant in the absence of (i) an effective registration statement under the Securities Act as
to this Warrant or such Warrant Shares and registration or qualification of this Warrant or such Warrant Shares under any applicable
U.S. federal or state securities law then in effect or (ii) an opinion of counsel, reasonably satisfactory to the Company,
that such registration and qualification are not required. Notwithstanding the foregoing, the restrictions imposed upon the transferability
of any of its rights to acquire Common Stock or Common Stock issuable on the exercise of such rights do not apply to transfers
from the beneficial owner of any of the aforementioned securities to its nominee or from such nominee to its beneficial owner,
and shall terminate as to any particular share of Common Stock when (i) such security shall have been effectively registered under
the Securities Act and sold by the holder thereof in accordance with such registration or (ii) such security shall have been sold
without registration in compliance with Rule 144 under the Securities Act, or (iii) a letter shall have been issued to the Registered
Holder at its request by the staff of the Securities and Exchange Commission or a ruling shall have been issued to the Registered
Holder at its request by the Securities and Exchange Commission stating that no action shall be recommended by such staff or taken
by the Securities and Exchange Commission, as the case may be, if such security is transferred without registration under the Securities
Act in accordance with the conditions set forth in such letter or ruling and such letter or ruling specifies that no subsequent
restrictions on transfer are required. Whenever the restrictions imposed hereunder shall terminate, as hereinabove provided, the
Registered Holder or holder of a share of common stock then outstanding as to which such restrictions have terminated shall be
entitled to receive from the Company, without expense to such holder, one or more new certificates for the Warrant or for such
shares of Common Stock not bearing any restrictive legend.

 

(d)          Financial
Risk. The Registered Holder has such business and financial experience as is required to give it the capacity to protect
its own interests in connection with its investment.

 

(e)          Accredited
Investor. The Registered Holder is an “accredited investor” as defined by Rule 501 of Regulation D under the
Securities Act.

 

18.         Representations
and Warranties of the Company. This Warrant has been entered into by the Registered Holder in reliance upon the following
representations and covenants of the Company:

 

(a)          Authorization.
The Warrant has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company
enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief
of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

(b)          Valid
Issuance. The Warrant Shares is duly authorized and reserved for issuance, and when issued, sold and delivered in accordance
with the terms of this Warrant will be duly and validly issued, fully paid and nonassessable.

 

(c)          No
Conflict. The execution and delivery of this Warrant do not, and the consummation of the transactions contemplated hereby
will not, conflict with, or result in any violation of, breach or default (with or without notice or lapse of time, or both), or
give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit, under,
any provision of the Certificate of Incorporation or bylaws of the Company, any material agreement of the Company filed with the
Commission, or any order, decree, statute, law, ordinance, rule, listing requirement or regulation applicable to the Company, its
properties or assets, which conflict, violation, default or right would have a material adverse effect on the business, properties,
prospects, financial condition or operations of the Company.

 

    	 	- 10 -	 

     

    

 

19.         Counterparts.
This Warrant may be executed in counterparts, and each such counterpart shall be deemed an original for all purposes.

 

[SIGNATURES TO FOLLOW]

    	 	- 11 -	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Warrant as of the date first above written.

 

	 	ELEPHANT TALK COMMUNICATIONS CORP.
	 	 	 
	 	By	 
	 	 	 
	 	Name:	Robert Harold (Hal) Turner
	 	 	 
	 	Title:	Executive Chairman of the Board
	 	 	 
	 	REGISTERED HOLDER
	 	 	 
	 	By	 
	 	 	 
	 	Name:	 
	 	 	(print)
	 	Title:	 

 

    	 	- 12 -	 

     

    

 

Exhibit A

 

WARRANT EXERCISE FORM

 

The undersigned hereby irrevocably elects
to exercise the within Warrant to the extent of purchasing ______ shares of Common Stock of Elephant Talk Communications Corp.,
a Delaware corporation, and hereby makes payment of $___________ in payment therefore, all in accordance with the terms and conditions
of the Warrant dated ________, 2015.

 

Name: ______________________________________

 

Signature: ___________________________________

 

Signature of joint holder (if applicable): _____________________________________________

 

Date: ___________________

 

INSTRUCTIONS FOR ISSUANCE OF STOCK

(if other than to the Registered Holder
of the within Warrant)

 

Name: ______________________________________

 

Address: _____________________________________________________________________

 

Social Security or Taxpayer Identification Number of Recipient:
_________________________

 

    	 	- 1 -	 

     

    

 

Exhibit B

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, _____________________
hereby sells, assigns and transfers unto _______________________ the right to purchase Common Stock of Elephant Talk Communications
Corp., a Delaware corporation, represented by this Warrant to the extent of shares as to which such right is exercisable and does
hereby irrevocably constitute and appoint ______________________, Attorney, to transfer the same on the books of the Company with
full power of substitution in the premises.

 

Date: __________

 

Signature: ______________________________________

 

Signature of joint holder (if applicable):

 

_____________________________________________

 

    	 	- 2 -Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

 

Elephant Talk Communications Corp.

 

Offering of Units, 

Unit consisting of:
(i) One (1) convertible promissory note in the principal amount of $30,000 (the “Notes”), which is convertible into
shares (the “Note Shares”) of Common Stock of the Company, $.00001 par value, (the “Common Stock”) at the
option of the holder at a conversion price of $.30 per share; and (ii) a five-year warrant (each a “Warrant” and collectively,
the “Warrants”) to purchase one hundred thousand (100,000) shares of Common Stock (the “Warrant Shares”)
at an exercise price of $.45 per share (the “Warrant Exercise Price”)

 

Offering Price: $30,000 Per Unit

 

Minimum Offering: 17 Units ($510,000)

 

Maximum Offering: 140 Units ($4,200,000)

 

HOW TO SUBSCRIBE

 

The minimum investment
which must be made by any subscriber is one Unit of Elephant Talk Communications Corp. (the “Company”). Any qualified
subscriber who wishes to purchase Units should deliver the following items to the Selling Agent:

 

		(1)	one dated and executed copy of the Subscription Agreement with all blanks properly completed;

		(2)	one dated and executed copy of the Confidential Subscriber Questionnaire with all blanks properly
completed; and

		(3)	either:

 

			(i) a check payable to the order of “Continental Stock Transfer & Trust Company, LLC
as Escrow Agent for Elephant Talk Communications Corp.” in the amount of $30,000 per each Unit purchased; or

 

(ii) wire transfer
to “Continental Stock Transfer & Trust Company, LLC as Escrow Agent for Elephant Talk Communications Corp.” in
accordance with the wire transfer instructions attached hereto as Exhibit A. All subscription proceeds received and accepted will
be deposited directly into the Escrow Account pending receipt of funds equal or greater than to the Minimum Offering at which time
the proceeds will be distributed to the operating account of the Company in the initial closing (“Initial Closing”).
The Company may conduct subsequent closings (each, a “Subsequent Closing”) until the earlier of: (i) the Termination
Date (hereinafter defined), or (ii) the date upon which the Maximum Amount is subscribed for by Investors (the “Final
Closing”). Each of the Initial Closing, Subsequent Closings and the Final Closing is referred to as a “Closing.”

 

    	 	1	 

     

    

 

ELEPHANT TALK COMMUNICATIONS CORP.

 

SUBSCRIPTION AGREEMENT

 

The undersigned (hereinafter
“Subscriber”) hereby confirms his/her/its subscription for the purchase of ______________ units (the “Units”),
with each Unit consisting of : one (1) convertible promissory note in the principal amount of $30,000
(the “Notes”), which is convertible into shares (the “Note Shares”) of Common Stock of the Company, $.00001
par value, (the “Common Stock”) at the option of the holder at a conversion price of $.30 per share; and a five-year
warrant (each a “Warrant” and collectively, the “Warrants”) to purchase one hundred thousand (100,000)
shares of Common Stock (the “Warrant Shares”) at an exercise price of $.45 per share (the “Warrant Exercise Price”),
of Elephant Talk Communications Corp., a Delaware corporation (the “Company”), on the terms described below.

 

Capitalized terms used
and not otherwise defined herein shall have the respective meanings set forth in the Private Placement Memorandum dated December
2, 2015. The Units, Notes and Warrants are sometimes referred to herein as the “Securities.”

 

In connection with
this subscription, Subscriber and the Company agree as follows:

 

1.          Purchase
and Sale of the Units.

 

(a)          The
Company hereby agrees to issue and to sell to Subscriber, and Subscriber hereby agrees to purchase from the Company, units for
the aggregate subscription amount set forth on the signature page hereto. The Subscriber understands that this subscription is
not binding upon the Company until the Company accepts it. The Subscriber acknowledges and understands that acceptance of this
Subscription will be made only by a duly authorized representative of the Company executing and mailing or otherwise delivering
to the Subscriber at the Subscriber’s address set forth herein, a counterpart copy of the signature page to this Subscription
Agreement indicating the Company’s acceptance of this Subscription. The Company reserves the right, in its sole discretion
for any reason whatsoever, to accept or reject this subscription in whole or in part. Following the acceptance of this Subscription
Agreement by the Company, the Company shall issue and deliver to Subscriber the Units subscribed for hereunder against payment
in U.S. Dollars of the Purchase Price (as defined below). If this subscription is rejected, the Company and the Subscriber shall
thereafter have no further rights or obligations to each other under or in connection with this Subscription Agreement. If this
subscription is not accepted by the Company on or before the last day of the Offering Period, this subscription shall be deemed
rejected.

 

(b)          Subscriber
has hereby delivered and paid concurrently herewith the aggregate purchase price for the Unit set forth on the signature page hereof
in an amount required to purchase and pay for the Unit subscribed for hereunder (the “Purchase Price”), which
amount has been paid in U.S. Dollars by wire transfer or check, subject to collection, to the order of “Elephant Talk Communications
Corp.”

 

    	 	2	 

     

    

 

(c)          Subscriber
understands and acknowledges that this subscription is part of a private placement by the Company of up to a minimum of $510,000
(the “Minimum Amount”) and a maximum of $4,200,000 in Units, which offering is being made on a “all-or-none”
basis with respect to the Minimum Amount and a “best efforts” basis with respect to the Maximum Amount. Subscriber
understands that Company must sell the Minimum Amount before it receives, and have the right to expend, the net proceeds from the
sale of any Units. The proceeds from the sale of the Units will be held in escrow until at least the Minimum Amount is met, and
the Company, upon accepting subscriptions, at its discretion may immediately thereafter conduct a closing and expend the subscription
proceeds.

 

2.          Representations
and Warranties of Subscriber. Subscriber represents and warrants to the Company and the Selling Agent as follows:

 

(a)          Subscriber
is an “accredited investor” as defined by Rule 501 under the Securities Act of 1933, as amended (the “Act”),
and Subscriber is capable of evaluating the merits and risks of Subscriber’s investment in the Securities and has the ability
and capacity to protect Subscriber’s interests.

 

(b)          Subscriber
understands that the Securities have not been registered. Subscriber understands that the Securities will not be registered under
the Act on the ground that the issuance thereof is exempt under Section 4(a)(2) and Rule 506 (b) of the Act and as a transaction
by an issuer not involving any public offering and that, in the view of the United States Securities and Exchange Commission (the
“SEC”), the statutory basis for the exception claimed would not be present if any of the representations and
warranties of Subscriber contained in this Subscription Agreement or those of other purchasers of the Units are untrue or, notwithstanding
the Subscriber’s representations and warranties, the Subscriber currently has in mind acquiring any of the Units for resale
upon the occurrence or non-occurrence of some predetermined event.

 

(c)          Subscriber
is purchasing the Unit subscribed for hereby for investment purposes and not with a view to distribution or resale, nor with the
intention of selling, transferring or otherwise disposing of all or any part thereof for any particular price, or at any particular
time, or upon the happening of any particular event or circumstance, except selling, transferring, or disposing of the Securities
in full compliance with all applicable provisions of the Act, the rules and regulations promulgated by the SEC thereunder, and
applicable state securities laws; and that an investment in the Securities is not a liquid investment.

 

(d)          Subscriber
acknowledges that Subscriber has had the opportunity to ask questions of, and receive answers from, the Company or any authorized
person acting on its behalf concerning the Company and its business and to obtain any additional information, to the extent possessed
by the Company (or to the extent it could have been acquired by the Company without unreasonable effort or expense) necessary to
verify the accuracy of the information received by Subscriber. In connection therewith, Subscriber acknowledges that Subscriber
has had the opportunity to discuss the Company’s business, management and financial affairs with the Company’s management
or any authorized person acting on its behalf. Subscriber has received and reviewed the Memorandum, and all the information concerning
the Company and the Securities, both written and oral, that Subscriber desires. Without limiting the generality of the foregoing,
Subscriber has been furnished with or has had the opportunity to acquire, and to review: (i) copies of all of the Company’s
publicly available documents, Memorandum, and (ii) all information, both written and oral, that Subscriber desires with respect
to the Company’s business, management, financial affairs and prospects. In determining whether to make this investment, Subscriber
has relied solely on (i) Subscriber’s own knowledge and understanding of the Company and its business based upon Subscriber’s
own due diligence investigations and the information furnished pursuant to this paragraph, and (ii) the information described in
subparagraph 2(g) below. Subscriber understands that no person has been authorized to give any information or to make any representations
which were not contained in the Memorandum and Subscriber has not relied on any other representations or information.

 

    	 	3	 

     

    

  

(f)          Subscriber
has all requisite legal and other power and authority to execute and deliver this Subscription Agreement and to carry out and perform
Subscriber’s obligations under the terms of this Subscription Agreement. This Subscription Agreement constitutes a valid
and legally binding obligation of Subscriber, enforceable in accordance with its terms, subject to laws of general application
relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief
or other general principles of equity, whether such enforcement is considered in a proceeding in equity or law.

 

(g)          Subscriber
has carefully considered and has discussed with the Subscriber’s legal, tax, accounting and financial advisors, to the extent
the Subscriber has deemed necessary, the suitability of this investment and the transactions contemplated by this Subscription
Agreement for the Subscriber’s particular federal, state, local and foreign tax and financial situation and has independently
determined that this investment and the transactions contemplated by this Subscription Agreement are a suitable investment for
the Subscriber. Subscriber has relied solely on such advisors and not on any statements or representations of the Company or any
of its agents. Subscriber understands that Subscriber (and not the Company) shall be responsible for Subscriber’s own tax
liability that may arise as a result of this investment or the transactions contemplated by this Subscription Agreement.

 

(h)          This
Subscription Agreement and the Confidential Subscriber Questionnaire accompanying this Subscription Agreement do not contain any
untrue statement of a material fact or omit any material fact concerning Subscriber.

 

(i)          There
are no actions, suits, proceedings or investigations pending against Subscriber or Subscriber’s assets before any court or
governmental agency (nor, to Subscriber’s knowledge, is there any threat thereof) which would impair in any way Subscriber’s
ability to enter into and fully perform Subscriber’s commitments and obligations under this Subscription Agreement or the
transactions contemplated hereby.

 

(j)          The
execution, delivery and performance of and compliance with this Subscription Agreement and the issuance of the Notes and Warrants
constituting the components of the Units will not result in any violation of, or conflict with, or constitute a default under,
any of Subscriber’s articles of incorporation or by-laws, or equivalent limited liability company, trust or partnership documents,
if applicable, or any agreement to which Subscriber is a party or by which it is bound, nor result in the creation of any mortgage,
pledge, lien, encumbrance or charge against any of the assets or properties of Subscriber or the Units.

 

    	 	4	 

     

    

  

(k)          Subscriber
acknowledges that an investment in the Securities is speculative and involves a high degree of risk and that Subscriber can bear
the economic risk of the purchase of the Securities, including a total loss of his/her/its investment.

 

(l)          Subscriber
acknowledges that he/she/it has carefully reviewed and considered the risk factors discussed in the “Risk Factors”
section of the Memorandum.

 

(m)          Subscriber
recognizes that no federal, state or foreign agency has recommended or endorsed the purchase of the Securities.

 

(n)          Subscriber
is aware that the Units, the Notes and Warrants are, and the Common Stock issuable upon exercise of the Warrant will be, when issued,
“restricted securities” as that term is defined in Rule 144 of the general rules and regulations under the Act.

 

(o)          Subscriber
understands that the Notes and Warrants shall bear the following legend or one substantially similar thereto, which Subscriber
has read and understands:

 

NEITHER THIS SECURITY NOR
ANY SECURITY INTO WHICH IT MAY BE CONVERTED HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR APPLICABLE STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY SECURITY INTO WHICH IT MAY BE CONVERTED NOR ANY
INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF AT ANY TIME IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM REGISTRATION. 

 

(p)          Because
of the legal restrictions imposed on resale, Subscriber understands that the Company shall have the right to note stop-transfer
instructions in its stock transfer records, and Subscriber has been informed of the Company’s intention to do so. Any sales,
transfers, or other dispositions of the Notes or Warrants by Subscriber, if any, will be made in compliance with the Act and all
applicable rules and regulations promulgated thereunder.

 

(q)          Subscriber
acknowledges that Subscriber has such knowledge and experience in financial and business matters that Subscriber is capable of
evaluating the merits and risks of an investment in the Securities and of making an informed investment decision with respect thereto.

 

(r)          Subscriber
represents that: (i) Subscriber is able to bear the economic risks of an investment in the Securities and to afford a complete
loss of the investment, and (ii) (A) Subscriber could be reasonably assumed to have the ability and capacity to protect his/her/its
interests in connection with this subscription; or (B) Subscriber has a pre-existing personal or business relationship with either
the Company or any affiliate thereof of such duration and nature as would enable a reasonably prudent purchaser to be aware of
the character, business acumen and general business and financial circumstances of the Company or such affiliate and is otherwise
personally qualified to evaluate and assess the risks, nature and other aspects of this subscription.

 

    	 	5	 

     

    

  

(s)          Subscriber
further represents that the address of Subscriber set forth below is his/her principal residence (or, if Subscriber is a company,
partnership or other entity, the address of its principal place of business); that Subscriber is purchasing the Securities for
Subscriber’s own account and not, in whole or in part, for the account of any other person; Subscriber is purchasing the
Securities for investment and not with a view to the resale or distribution thereof; and that Subscriber has not formed any entity,
and is not an entity formed, for the purpose of purchasing the Securities.

 

(t)          Subscriber
understands that the Company shall have the unconditional right to accept or reject this subscription, in whole or in part, for
any reason or without a specific reason, in the sole and absolute discretion of the Company (even after receipt and clearance of
Subscriber’s funds). This Subscription Agreement is not binding upon the Company until accepted in writing by an authorized
officer of the Company. In the event that this subscription is rejected, then Subscriber’s subscription funds (to the extent
of such rejection) will be promptly returned in full without interest thereon or deduction therefrom.

 

(u)          Subscriber
has not been furnished with any oral representation or oral information in connection with the offering of the Securities that
is not contained in, or is in any way contrary to or inconsistent with, statements made in the Memorandum and this Subscription
Agreement.

 

(v)         Subscriber
represents that Subscriber is not subscribing for the Securities as a result of or subsequent to any advertisement, article, notice
or other communication published in any newspaper, magazine or similar media or broadcast over the Internet, television or radio
or presented at any seminar or meeting or any public announcement or filing of or by the Company.

 

(w)          Subscriber
has carefully read this Subscription Agreement and the Memorandum, and Subscriber has accurately completed the Confidential Subscriber
Questionnaire which accompanies this Subscription Agreement.

 

(x)          No
representations or warranties have been made to Subscriber by the Company, or any officer, employee, agent, affiliate or subsidiary
of the Company, other than the representations of the Company contained herein, and in subscribing for the Securities the Subscriber
is not relying upon any representations other than those contained in the Memorandum or in this Subscription Agreement.

 

(y)          Subscriber
represents and warrants, to the best of Subscriber’s knowledge, that no finder, broker, agent, financial advisor or other
intermediary, nor any purchaser representative or any broker-dealer acting as a broker, is entitled to any compensation in connection
with the transactions contemplated by this Subscription Agreement.

 

    	 	6	 

     

    

  

(z)          Subscriber
represents and warrants that Subscriber has: (i) not distributed or reproduced the Memorandum, in whole or in part, at any time,
without the prior written consent of the Company, (ii) kept confidential the existence of the Memorandum and the information contained
therein or made available in connection with any further investigation of the Company and (iii) refrained and shall refrain from
trading in the publicly-traded securities of the Company for so long as such recipient has been in possession of any material non-public
information contained in the Memorandum.

 

(aa)          If the Subscriber is a
corporation, partnership, limited liability company, trust, or other entity, the person executing this Subscription Agreement
hereby represents and warrants that the above representations and warranties shall be deemed to have been made on behalf of
such entity and the Subscriber has made the same after due inquiry to determine the truthfulness of such representations and
warranties.

 

(bb)          If the Subscriber is a corporation,
partnership, limited liability company, trust, or other entity, it represents that: (i) it is duly organized, validly existing
and in good standing in its jurisdiction of incorporation or organization and has all requisite power and authority to execute
and deliver this Subscription Agreement and purchase the Securities as provided herein; (ii) its purchase of the Securities will
not result in any violation of, or conflict with, any term or provision of the charter, by-laws or other organizational documents
of Subscriber or any other instrument or agreement to which the Subscriber is a party or is subject; (iii) the execution and delivery
of this Subscription Agreement and Subscriber’s purchase of the Securities has been duly authorized by all necessary action
on behalf of the Subscriber; and (iv) all of the documents relating to the Subscriber’s subscription to the Securities have
been duly executed and delivered on behalf of the Subscriber and constitute a legal, valid and binding agreement of the Subscriber.

 

(cc)         The
Subscriber understands and agrees that the securities are anticipated to be sold by the Company through the Selling Agent, a licensed
broker-dealer, in an “best efforts” offering and that the Company has engaged the Selling Agent to sell the securities
on its behalf, and will pay the Selling Agent the fees, expenses and Selling Agent’s Warrants set forth in the Memorandum
in connection with the sale of the Securities.

 

(dd)         The
Subscriber should check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac>
before making the following representations. The Subscriber represents that the amounts invested by it in the Company in the Offering
were not and are not directly or indirectly derived from activities that contravene federal, state or international laws and regulations,
including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among
other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities
and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at
<http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing
with individuals or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists;

 

    	 	7	 

     

    

  

To the best of the
Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the
Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the
Subscriber is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named
on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Company may not accept any
amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding paragraph.
The Subscriber agrees to promptly notify the Company and the Selling Agent should the Subscriber become aware of any change in
the information set forth in these representations. The Subscriber understands and acknowledges that, by law, the Company may be
obligated to “freeze the account” of the Subscriber, either by prohibiting additional subscriptions from the Subscriber,
declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations, and
Selling Agent may also be required to report such action and to disclose the Subscriber’s identity to OFAC. The Subscriber
further acknowledges that the Company may, by written notice to the Subscriber, suspend the redemption rights, if any, of the Subscriber
if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations applicable to the Company
and Selling Agent or any of the Company’s other service providers. These individuals include specially designated nationals,
specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;

 

To the best of the
Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the
Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the
Subscriber is acting as agent or nominee in connection with this investment is a senior foreign political figure , or any immediate
family member or close associate of a senior foreign political figure; and

 

If the Subscriber is
affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Subscriber receives deposits from,
makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Subscriber represents and warrants
to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the
Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking
activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking
activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical
presence in any country and that is not a regulated affiliate.

 

3.          Representations
and Warranties of the Company. The Company represents and warrants to Subscriber as follows:

 

(a)          Due
Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of Delaware
and has the requisite power and authority to own its properties and to carry on its business as presently conducted. The Company
is qualified to transact business as a foreign corporation and is in good standing under the laws of each jurisdiction where the
location of its properties or the conduct of its business makes such qualification necessary, except where the failure to be so
qualified and in good standing would not have a material and adverse effect on the business, condition (financial or otherwise),
operations, prospects or property of the Company or any of its subsidiaries, taken as a whole (“Material Adverse Effect”).

 

    	 	8	 

     

    

  

(b)          Due
Authorization; Enforceability. Each transaction document has been duly authorized, executed and delivered by the Company and
is a valid and binding agreement enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally
and to general principles of equity. The Company has full corporate power and authority necessary to conduct its business as presently
conducted and to enter into and deliver the transaction documents and to perform its obligations thereunder.

 

(c)          Non
Contravention. None of the execution and delivery of, or performance by the Company under, any of the transaction documents
or the consummation of the transactions herein or therein contemplated conflicts with or violates, or will result in the creation
or imposition of any lien, charge or other encumbrance upon any of the assets of the Company under, any agreement or other instrument
to which the Company is a party or by which the Company or its assets may be bound, any term of the certificate of incorporation
or by-laws of the Company, or any license, permit, judgment, decree, order, statute, rule or regulation applicable to the Company
or any of its assets, except where such conflict, violation or creation

 

(d)          Conduct
of Business. The conduct of business by the Company as presently conducted is not subject to continuing oversight, supervision,
regulation or examination by any governmental official or body of the United States or any other jurisdiction wherein the Company
conducts or proposes to conduct such business, except as such regulation as is applicable to commercial enterprises generally.
The Company has obtained all requisite licenses, permits and other governmental authorization necessary to conduct its business
as presently, and as proposed to be, conducted, except where the failure to obtain such license, permit or other governmental authorization
would result in a Material Adverse Effect.

 

(e)          No
Defaults. No default by the Company exists in the due performance under any material agreement to which the Company is a party
or to which any of its assets is subject (collectively, the “Company Agreements”), except where such defaults
do not, individually or in the aggregate, have a Material Adverse Effect. The Company Agreements are in full force and effect in
accordance with their respective terms.

 

(f)          Anti-Terrorism.
Neither the sale of the Units by the Company nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as
amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter
V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, the Company is
not (a) a person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September
23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed.
Reg. 49079 (2001)) or (b) a person who engages in any dealings or transactions, or be otherwise associated, with any such person.
The Company and its subsidiaries are in compliance, in all material respects, with the USA Patriot Act of 2001 (signed into law
October 26, 2001).

 

    	 	9	 

     

    

  

(g)          Capitalization;
Additional Issuances. The issued and outstanding securities of the Company as of [          ], 2015 are as set forth in the Memorandum.
Except as set forth in the Memorandum, as of [         ], 2015 there are no outstanding agreements or preemptive or similar rights
affecting the Company’s Common Stock and no outstanding rights, warrants or options to acquire, or instruments convertible
into or exchangeable for, or agreements or understandings with respect to the sale or issuance of any Common Stock of the Company.

 

(h)          Consents.
No consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the
Company, or any of its affiliates, is required for the execution by the Company of the transaction documents and compliance and
performance by the Company of its obligations under the transaction documents, including, without limitation, the issuance and
sale of the Securities, other than such consents, approvals and authorizations as shall have been received by the Company as of
the closing date.

 

(i)          The
Securities. The Securities upon issuance:

 

(i)          are,
or will be, free and clear of any security interests, liens, claims or other encumbrances, subject to restrictions upon transfer
under the Act and any applicable state securities laws;

 

(ii)         have
been, or will be, duly and validly authorized and on the date of issuance of the Securities, such Securities will be duly and validly
issued, fully paid and non-assessable;

 

(iii)        will
not have been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of the Company;

 

(iv)        will
have been issued in reliance upon an exemption from the registration requirements of and, assuming the representations and warranties
of the Subscriber herein is true and accurate, will have been issued in compliance with Section 5 under the 1933 Act.

 

(j)          Litigation.
Except as disclosed in the Memorandum, there are no material legal proceedings, other than routine litigation incidental to the
business, pending or, to the knowledge of the Company, threatened against or involving the Company or any of its respective property
or assets. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory
body or arbitration tribunal against or involving the Company.

 

4.          Indemnification.
Subscriber agrees to indemnify and hold harmless the Company, the Selling Agent, and their respective officers, directors, employees,
shareholders, agents, attorneys, representatives and affiliates, and any person acting for or on behalf of the Company or the Selling
Agent, from and against any and all damage, loss, liability, cost and expense (including reasonable attorneys’ fees and disbursements)
which any of them may incur by reason of the failure by Subscriber to fulfill any of the terms and conditions of this Subscription
Agreement, or by reason of any breach of the representations and warranties made by Subscriber herein, or in any other document
provided by Subscriber to the Company in connection with this investment. All representations, warranties and covenants of each
of Subscriber and the Company contained herein shall survive the acceptance of this subscription and the closings.

 

    	 	10	 

     

    

  

5.          Registration
Rights. The Company shall, within forty-five (45) days of the Final Closing, file a registration statement on Form S-1, Form
S-3, or other eligible form (the “Registration Statement”), registering the shares issuable upon conversion
of the Note (“Note Shares”) and shares issuable upon exercise of the Warrant (“Warrant Shares”). The Warrant
Shares and Note Shares to be registered shall hereinafter be referred to as the “Registrable Securities.” The
Registration Statement shall be filed with the Securities and Exchange Commission. 

 

All expenses relating
to the Company’s compliance with Section 5 hereof, including, without limitation, all registration and filing fees, printing
expenses, fees and disbursements of counsel and independent public accountants for the Company, fees and expenses incurred in connection
with complying with state securities or “blue sky” laws, fees of FINRA, transfer taxes, fees of transfer agents and
registrars are called “Registration Expenses;” provided, however, Registration Expenses shall
not include counsel fees to the Holder. The Company shall be responsible for all Registration Expenses.

 

The Company shall
use commercially reasonable efforts to provide to the Holder, at least fifteen (15) days prior to the effectiveness of the Registration
Statement, notice of such expected effective date (the “Expected Effectiveness Date”). When the Company proposes
to effect the registration of the Registrable Securities under the Securities Act, the Company, provided it received notice
(the “Holder Notice”) at least five (5) days prior to the Expected Effectiveness Date from the Holder specifying
items (a) and (b), below, shall:

 

(a)          furnish
to the Holder such number of copies of the Registration Statement and the prospectus included therein (including each preliminary
prospectus) as the Holder reasonably may request in the Holder Notice to facilitate the public sale or disposition of the Registrable
Securities covered by the Registration Statement; and

 

(b)          list
the Registrable Securities with any trading market on which the Common Stock is then listed.

 

The Company shall
use commercially reasonable efforts to keep the Registration Statement continuously effective under the Securities Act until the
earlier of: (i) the date that all Registrable Securities has been sold or may be sold by non-affiliates without volume restrictions
pursuant to Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed
and acceptable to the Company's transfer agent and the affected Holders and (ii) the date which is the expiration date of the Warrants.
Such Registration Statement shall also cover, to the extent allowable under the Securities Act and the rules promulgated thereunder,
such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions
with respect to the Warrant Shares.

 

The foregoing provisions notwithstanding,
the Company may withdraw any registration statement referred to in this Section 5 without thereby incurring any liability to the
Holder.

 

    	 	11	 

     

    

  

6.          Miscellaneous.

 

(a)          Subscriber
agrees not to transfer or assign this Subscription Agreement or any of Subscriber’s interest herein and further agrees that
the transfer or assignment of the Securities acquired pursuant hereto shall be made only in accordance with all applicable laws.

 

(b)          Subscriber
agrees that Subscriber cannot cancel, terminate, or revoke this Subscription Agreement or any agreement of Subscriber made hereunder,
and this Subscription Agreement shall survive the death or legal disability of Subscriber and shall be binding upon Subscriber’s
heirs, executors, administrators, successors, and permitted assigns.

 

(c)          Subscriber
has read and has accurately completed this entire Subscription Agreement.

 

(d)          This
Subscription Agreement, the Confidential Purchase Questionnaire, the Note, the certificate representing the Warrant constitute
the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended or waived only by
a written instrument signed by all parties.

 

(f)          Subscriber
acknowledges that it has been advised and has had the opportunity to consult with Subscriber’s own attorney regarding this
subscription and Subscriber has done so to the extent that Subscriber deems appropriate.

 

(g)          Any
notice or other document required or permitted to be given or delivered to the parties hereto shall be in writing and sent: (i)
by fax if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges
prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid) or (c) by a recognized overnight
delivery service (with charges prepaid).

 

If to the Company, at:

 

Elephant
Talk Communication Corp.

100 Park
Avenue

New York,
NY 10017

Tel: 31 20
635916

 

With a copy
to:

 

Barry I.
Grossman, Esq.

Ellenoff
Grossman & Schole LLP

1345 Avenue
of the Americas FL 11

New York,
NY 10105

Tel: (212)
370-1300, Fax: (212) 370-7889

 

If to the Subscriber, at its address
set forth on the signature page to this Subscription Agreement, or such other address as Subscriber shall have specified to the
Company in writing.

 

    	 	12	 

     

    

  

(h)          Failure
of the Company to exercise any right or remedy under this Subscription Agreement or any other agreement between the Company and
the Subscriber, or otherwise, or any delay by the Company in exercising such right or remedy, will not operate as a waiver thereof.
No waiver by the Company will be effective unless and until it is in writing and signed by the Company.

 

(i)          This
Subscription Agreement shall be enforced, governed and construed in all respects in accordance with the laws of the State of New
York, as such laws are applied by the New York courts except with respect to the conflicts of law provisions thereof, and shall
be binding upon the Subscriber and the Subscriber’s heirs, estate, legal representatives, successors and permitted assigns
and shall inure to the benefit of the Company, and its successors and assigns.

 

(j)          Any
legal suit, action or proceeding arising out of or relating to this Subscription Agreement or the transactions contemplated hereby
shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern
District of New York. The parties hereto hereby: (i) waive any objection which they may now have or hereafter have to the venue
of any such suit, action or proceeding, and (ii) irrevocably consent to the jurisdiction of the New York Supreme Court, County
of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding.
The parties further agree to accept and acknowledge service of any and all process which may be served in any such suit, action
or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York and agree that service of process upon a party which is mailed by certified mail to such party’s address shall
be deemed in every respect effective service of process upon such party in any such suit, action or proceeding.

 

(k)          If
any provision of this Subscription Agreement is held to be invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed modified to conform with such statute or rule of law. Any provision hereof that may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provisions hereof.

 

(l)          The
parties understand and agree that money damages would not be a sufficient remedy for any breach of this Subscription Agreement
by the Company or the Subscriber and that the party against which such breach is committed shall be entitled to equitable relief,
including an injunction and specific performance, as a remedy for any such breach, without the necessity of establishing irreparable
harm or posting a bond therefor. Such remedies shall not be deemed to be the exclusive remedies for a breach by either party of
this Subscription Agreement but shall be in addition to all other remedies available at law or equity to the party against which
such breach is committed.

 

(m)          All pronouns
and any variations thereof used herein shall be deemed to refer to the masculine, feminine, singular or plural, as identity of
the person or persons may require.

 

    	 	13	 

     

    

  

(n)          This Subscription
Agreement may be executed in counterparts and by facsimile, each of which shall be deemed an original, but all of which shall constitute
one and the same instrument.

 

[Remainder of Page intentionally left blank]

 

[Signature Pages Follow]

 

    	 	14	 

     

    

 

Signature Page for Individuals:

 

IN WITNESS WHEREOF,
Subscriber has caused this Subscription Agreement to be executed as of the date indicated below.

 

	$	 	 	 

	Purchase Price	 	Aggregate Amount of Investment
	 	 	 
	 	 	 
	Print or Type Name	 	Print or Type Name (Joint-owner)
	 	 	 
	 	 	 
	Signature	 	Signature (Joint-owner)
	 	 	 
	 	 	 
	Date	 	Date (Joint-owner)
	 	 	 
	 	 	 
	Social Security Number	 	Social Security Number (Joint-owner)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Address	 	Address (Joint-owner)
	 	 	 
	_________Joint Tenancy	 	_________Tenants in Common

 

    	 	S-1	 

     

    

 

Signature Page for Partnerships Corporations
or Other Entities:

 

IN WITNESS WHEREOF,
Subscriber has caused this Subscription Agreement to be executed as of the date indicated below.

 

 

	$	 	$	 
	    Total Purchase Price	   Aggregate Amount of Investment

	 	 	 
	 	 	 
	Print or Type Name of Entity	 	 
	 	 	 
	 	 	 
	Address	 	 
	 	 	 
	 	 	 
	Taxpayer I.D. No. (if applicable)	 	Date
	 	 	 
	 	 	 
	Signature	 	Print or Type Name and Indicate
	 	 	Title or Position with Entity
	 	 	 
	 	 	 
	Signature (other authorized signatory)	 	Print or Type Name and Indicate
	 	 	Title or Position with Entity

 

    	 	S-2	 

     

    

 

Acceptance:

 

IN WITNESS WHEREOF,
the Company has caused this Subscription Agreement to be executed, and the foregoing subscription accepted, as of the date indicated
below.

 

	 	ELEPHANT TALK COMMUNICATION CORP.
	 	 	 
	 	By:	 
	 	Name:	Robert Harold (Hal) Turner
	 	Title:	Executive Chairman of the Board

 

Date:__________________________, 2015

 

    	 	S-3

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