Document:

Exhibit 10.1

 

 

Second
additional LetTER Agreement

 

VIA
EMAIL

 

Kenges Rakishev

c/o SAT & Company 

241 Mukanova Street 

Almaty Kazakhstan 050008

 

		Re:	Letter Agreement, dated as of September 11, 2015, Regarding Equity Investment for Funding of Net
Element, as modified by that certain Additional Letter Agreement dated October 7, 2015 (collectively, the “Original Letter
Agreement”)

 

 

This second additional
letter agreement is dated as of January 21, 2016 (the “Additional Funding Effective Date”). The undersigned
intend that (a) the terms of this second additional letter agreement will modify and supplement the terms and provisions of the
Original Letter Agreement. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms
in the Original Letter Agreement.

 

Whereas, in
the initial funding pursuant to the Original Letter Agreement, the aggregate amount of $1,590,000
was funded and, upon the approval of the issuance of the Restricted Shares and the Restricted Options by the Company’s shareholders’,
11,357,143 of the Restricted Shares and 11,357,143
of the Restricted Options were issued to the accredited investors that funded such $1,590,000
to the Company pursuant to the Original Letter Agreement.

 

Whereas, the
Original Letter Agreement contemplated the funding to Net Element, Inc., a Delaware corporation (the “Company”),
of up to $2,500,000 by the accredited investors in consideration for the issuance to such funding investors of restricted shares
of common stock of the Company (“Common Stock”) and options to purchase restricted shares of Common Stock.

 

Whereas, the
Special Committee consisting of three (3) independent and disinterested directors established and appointed by the Board of Directors
of the Company previously authorized the funding the Company of up to $2,500,000 in the aggregate and the issuance to such funding
investors of the appropriate number of restricted shares of Common Stock and options to purchase restricted shares of Common Stock
as consideration for such aggregate funding under the Original Letter Agreement.

 

Whereas, $910,000
remains unfunded under the Original Letter Agreement.

 

Whereas, Kenges
Rakishev desires to fund such remaining $910,000 to the Company in order to meet the Company’s current working capital requirements.

 

Now, Therefore,
the parties hereby agree as follows:

 

1.On the Additional Funding Effective
Date, Kenges Rakishev shall fund such remaining $910,000 to the Company. In consideration for such funding, the Company agrees
to issue to Kenges Rakishev, upon and subject to obtaining the Company’s shareholders approval for such issuance for purposes
of the Nasdaq Listing Rules (the “Stockholders Approval”) within 120 days from the date hereof:

 

(i) such
number of restricted (i.e., issued in reliance on an applicable exemption from registration under the Securities Act, and any disposition
of such shares to be subject to Rule 144 of the Securities Act) shares of common stock of the Company (“Common Stock”)
as shall equal $910,000 divided by $0.1951 (the closing consolidated bid price per one (1) share of Common Stock reported
on The NASDAQ Capital Market on the trading date immediately preceding the Additional Funding Effective Date (the Additional Funding
Effective Date being the date when the Company entered into a binding agreement to issue the securities)) (collectively, the “Consideration
Shares”); and

 

     
 

     

    

 

(ii) such
number of options to purchase restricted shares of Common Stock as will equal the number of the Consideration Shares (each, an
“Option”). Each Option shall expire on the fifth (5th) annual anniversary of such Option’s
issuance date and shall be exercisable (prior to its expiration) into one (1) restricted share of Common Stock at the exercise
price equal to $0.2146 (which is 110% of the closing consolidated bid price per one (1) share of Common Stock reported on The NASDAQ
Capital Market on the date immediately preceding the Additional Funding Effective Date). The form of option agreement with respect
to the Options is attached hereto as Exhibit A.

 

2.In the event that the Stockholders
Approval is not obtained within 120 days from the date hereof, then at Kenges Rakishev’s election, either (i) the purchase
price for the Consideration Shares and the Options shall be hereby automatically amended to be equal to the product of (x) the
number of Consideration Shares calculated pursuant to paragraph (1)(i) above and (y) the sum of (A) $0.1951 and (B) $0.125, in
which case Kenges Rakishev shall have paid to the Company the difference between the previously paid purchase price for the Consideration
Shares and Options and the purchase price for the Consideration Shares and Options calculated as set forth in this clause (i) of
this paragraph 2, (ii) the number of Consideration Shares and Options issuable to Kenges Rakishev shall be adjusted to be equal
to, in each case, the quotient determined by dividing (I) $910,000 by (II) $0.3201, or (iii) the Options shall not be issued and
Kenges Rakishev shall be issued the number of Consideration Shares calculated in accordance with paragraph (1)(i) above.

 

3.Notwithstanding anything to the contrary
contained in this second additional letter agreement or any other documents, at no time shall the Company issue shares of Common
Stock if such transaction would result in the issuance of more than 19.9% of the amount of issued and outstanding Common Stock
unless (i) the Company’s shareholders shall have approved the issuance of shares of common stock in excess of 20%, or
(ii) the Nasdaq has provided a waiver of Listing Rule 5635.

 

4.This second additional letter agreement
constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements
and understandings pertaining thereto. This second additional letter agreement may not be amended or modified in any respect, except
by the written agreement of the parties hereto. No party hereto may, without the prior written consent of the other party hereto,
assign or otherwise transfer, in whole or in part, any of its rights and obligations under this second additional letter agreement.
Except as expressly provided for herein, nothing in this second additional letter agreement shall confer any rights upon any person
that is not a party hereto or the successor or permitted assignee of a party to this second additional letter agreement. This second
additional letter agreement shall be governed by, and shall be construed, interpreted and enforced in accordance with the laws
of the State of Florida without regard to its choice of law provisions that would require the application of the law of another
jurisdiction. This second additional letter agreement may be executed and delivered (including by facsimile or electronic mail
transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed
and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Copies
of executed counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed
counterparts.

 

 

 

 

[Signatures are on next page.]

 

 

    2 
 

     

    

 

 

Please indicate your consent to the terms
of this second additional letter agreement by signing and dating this second letter agreement and returning it to the undersigned.

 

 

	 	NET ELEMENT, INC.	 
	 	 	 	 
	 	By:	/s/ Oleg Firer	 
	 	Name:	Oleg Firer	 
	 	Title:	Chief Executive Officer	 

 

	AGREED AND ACCEPTED BY:	 
	 	 
	 	 
	/s/  Kenges Rakishev	 
	KENGES RAKISHEV	 
	 	 

 

 

 

    3 
 

     

    

 

Exhibit A

 

Form of Option

 

[Attached hereto]

 

 

 

 

 

 

 

 

 

 

 

 

    4Exhibit 10.1

 

EQUITY PURCHASE AGREEMENT

 

BY AND BETWEEN

 

TIERRA GRANDE RESOURCES INC. 

 

AND

 

TARPON BAY PARTNERS LLC

 

Dated

 

June 15, 2015

 

     

    	 

    

 

THIS EQUITY PURCHASE AGREEMENT entered
into as of the 15th day of June, 2015 (this "AGREEMENT"), by and between TARPON BAY PARTNERS LLC, a
Florida limited liability company ("INVESTOR"), and TIERRA GRANDE RESOURCES INC., a Nevada corporation (the "COMPANY").

 

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to Investor, from
time to time as provided herein, and Investor shall purchase up to Five Million Dollars ($5,000,000) of the Company’s Common
Stock (as defined below); and

 

NOW, THEREFORE, the
parties hereto agree as follows:

 

ARTICLE I

 

CERTAIN DEFINITIONS

 

Section 1.1      DEFINED
TERMS as used in this Agreement, the following terms shall have the following meanings specified or indicated (such meanings to
be equally applicable to both the singular and plural forms of the terms defined)

 

"AGREEMENT" shall have
the meaning specified in the preamble hereof.

 

"BY-LAWS" shall have the meaning
specified in Section 4.7.

 

"CLAIM NOTICE" shall have the meaning
specified in Section 9.3(a).

 

“CLEARING DATE” shall be the date
in which the Estimated Put Shares (as defined in Section 2.2(a)) have been deposited into the Investor’s brokerage account..

 

"CLOSING" shall
mean one of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.3.

 

"CLOSING CERTIFICATE"
shall mean the closing certificate of the Company in the form of Exhibit B hereto.

 

    1 

    	 

    

 

"CLOSING PRICE"
shall mean the closing bid price for the Company’s common stock on the Principal Market on a Trading Day as reported by Bloomberg
Finance L.P.

 

"COMMITMENT PERIOD"
shall mean the period commencing on the Effective Date, and ending on the earlier of (i) the date on which Investor shall have
purchased Put Shares pursuant to this Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, or (ii) the date
occurring twenty four (24) months from the date of commencement of the Commitment Period.

 

"COMMON STOCK"
shall mean the Company's common stock, $0.0001 par value per share, and any shares of any other class of common stock whether now
or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and assets (upon
liquidation of the Company).

 

"COMMON STOCK EQUIVALENTS"
shall mean any securities that are convertible into or exchangeable for Common Stock or any options or other rights to subscribe
for or purchase Common Stock or any such convertible or exchangeable securities.

 

"COMPANY" shall
have the meaning specified in the preamble to this Agreement.

 

"DAMAGES" shall
mean any loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys' fees and disbursements
and costs and expenses of expert witnesses and investigation).

 

"DISPUTE PERIOD"
shall have the meaning specified in Section 9.3(a).

 

"DOLLAR VOLUME"
shall mean the product of (a) the Closing Price multiplied by (b) the trading volume on the Principal Market on a Trading Day.

 

"DTC" shall
have the meaning specified in Section 2.3.

 

    2 

    	 

    

 

"DWAC" shall
have the meaning specified in Section 2.3.

 

"EFFECTIVE DATE"
shall mean the date that the Registration Statement is declared effective by the SEC.

 

“ESTIMATED PUT
SHARES” shall have the meaning specified in Section 2.2(a)

 

"EXCHANGE ACT"
shall mean the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.

 

"FAST" shall
have the meaning specified in Section 2.3.

 

"FINRA" shall
mean the Financial Industry Regulatory Authority, Inc.

 

“FLOOR PRICE”
shall have the meaning specified in Section 2.2(c).

 

"INDEMNIFIED PARTY"
shall have the meaning specified in Section 9.3(a).

 

"INDEMNIFYING PARTY"
shall have the meaning specified in Section 9.3(a).

 

"INDEMNITY NOTICE"
shall have the meaning specified in Section 9.3(b).

 

"INVESTMENT AMOUNT"
shall mean the dollar amount to be invested by Investor to purchase Put Shares with respect to any Put as notified by the Company
to Investor in accordance with Section 2.2.

 

"INVESTOR"
shall have the meaning specified in the preamble to this Agreement.

 

    3 

    	 

    

 

"LEGEND" shall
have the meaning specified in Section 8.1.

 

"MARKET PRICE"
shall mean the lowest Closing Price on the Principal Market for any Trading Day during the Valuation Period, as reported by Bloomberg
Finance L.P.

 

"MATERIAL ADVERSE
EFFECT" shall mean any effect on the business, operations, properties, or financial condition of the Company that is material
and adverse to the Company and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere
with the ability of the Company to enter into and perform its obligations under any of this Agreement.

 

"MAXIMUM COMMITMENT
AMOUNT" shall mean Five Million Dollars ($5,000,000).

 

“PAR VALUE PAYMENT”
shall have the meaning specified in Section 2.2(a).

 

"PERSON" shall
mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

 

"PRINCIPAL MARKET"
shall mean any of the national exchanges (i.e. NYSE, NYSE AMEX, Nasdaq), OTCQX, the OTC Bulletin Board, or other principal exchange
which is at the time the principal trading exchange or market for the Common Stock.

 

"PURCHASE PRICE"
shall mean 90% of the Market Price on such date on which the Purchase Price is calculated in accordance with the terms and conditions
of this Agreement.

 

"PUT" shall
mean the right of the Company to require the Investor to purchase shares of Common Stock, subject to the terms and conditions of
this Agreement.

 

"PUT DATE"
shall mean any Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section 2.2(b).

 

    4 

    	 

    

 

"PUT NOTICE"
shall mean a written notice, substantially in the form of Exhibit A hereto, to Investor setting forth the Investment Amount with
respect to which the Company intends to require Investor to purchase shares of Common Stock pursuant to the terms of this Agreement.

 

"PUT SHARES"
shall mean all shares of Common Stock issued or issuable pursuant to a Put that has been exercised or may be exercised in accordance
with the terms and conditions of this Agreement.

 

"REGISTERED SECURITIES"
shall mean the (a) Put Shares, and (b) any securities issued or issuable with respect to any of the foregoing by way of exchange,
stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization
or otherwise. As to any particular Registered Securities, once issued such securities shall cease to be Registrable Securities
when (i) a Registration Statement has been declared effective by the SEC and such Registrable Securities have been disposed of
pursuant to a Registration Statement, (ii) such Registrable Securities have been sold under circumstances under which all of the
applicable conditions of Rule 144 are met, (iii) such time as such Registrable Securities have been otherwise transferred to holders
who may trade such shares without restriction under the Securities Act or (iv) in the opinion of counsel to the Company, which
counsel shall be reasonably acceptable to Investor, such Registrable Securities may be sold without registration under the Securities
Act or the need for an exemption from any such registration requirements and without any time, volume or manner limitations pursuant
to Rule 144(b)(i) (or any similar provision then in effect) under the Securities Act.

 

"REGISTRATION STATEMENT"
shall mean the Company’s effective registration statement on file with the SEC, and any follow up registration statement
or amendment thereto.

 

"REGULATION D"
shall mean Regulation D promulgated under the Securities Act.

 

"RULE 144"
shall mean Rule 144 under the Securities Act or any similar provision then in force under the Securities Act.

 

"SEC" shall
mean the Securities and Exchange Commission.

 

    5 

    	 

    

 

"SECURITIES ACT"
shall have the meaning specified in the recitals of this Agreement.

 

"SEC DOCUMENTS"
shall mean, as of a particular date, all reports and other documents filed by the Company pursuant to Section 13(a) or 15(d) of
the Exchange Act since the end of the Company's then most recently completed and reported fiscal year as of the time in question
(provided that if the date in question is within ninety days of the beginning of the Company's fiscal year, the term shall include
all documents filed since the beginning of the preceding fiscal year).

 

“SHORT SALES”
shall mean all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed
to include the location and/or reservation of borrowable shares of Common Stock).

 

"SUBSCRIPTION DATE"
shall mean the date on which this Agreement is executed and delivered by the Company and Investor.

 

"THIRD PARTY CLAIM"
shall have the meaning specified in Section 9.3(a).

 

“TRADING DAY” shall mean a day
on which the Principal Market shall be open for business.

 

“TRANSACTION DOCUMENTS”
shall mean this Agreement and the Registration Rights Agreement.

 

"TRANSFER AGENT"
shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common Stock upon
the Company's appointment of any such substitute or replacement transfer agent).

 

"UNDERWRITER"
shall mean any underwriter participating in any disposition of the Registered Securities on behalf of Investor pursuant to the
Registration Statement.

 

    6 

    	 

    

 

"VALUATION EVENT"
shall mean an event in which the Company at any time during a Valuation Period takes any of the following actions:

 

(a)           subdivides
or combines the Common Stock;

 

(b)          pays
a dividend in shares of Common Stock or makes any other distribution of shares of Common Stock, except for dividends paid with
respect to any series of preferred stock authorized by the Company, whether existing now or in the future;

 

(c)           issues any
options or other rights to subscribe for or purchase shares of Common Stock other than pursuant to this Agreement, and other than
options or stock grants issued or issuable to directors, officers and employees pursuant to a stock option program, whereby the
price per share for which shares of Common Stock may at any time thereafter be issuable pursuant to such options or other rights
shall be less than the Closing Price in effect immediately prior to such issuance;

 

(d)          issues
any securities convertible into or exchangeable for shares of Common Stock and the consideration per share for which shares of
Common Stock may at any time thereafter be issuable pursuant to the terms of such convertible or exchangeable securities shall
be less than the Closing Price in effect immediately prior to such issuance;

 

(e)           issues shares
of Common Stock otherwise than as provided in the foregoing subsections (a) through (d), at a price per share less, or for other
consideration lower, than the Closing Price in effect immediately prior to such issuance, or without consideration; or

 

(f)          makes
a distribution of its assets or evidences of indebtedness to the holders of Common Stock as a dividend in liquidation or by way
of return of capital or other than as a dividend payable out of earnings or surplus legally available for dividends under applicable
law or any distribution to such holders made in respect of the sale of all or substantially all of the Company's assets (other
than under the circumstances provided for in the foregoing subsections (a) through (e).

 

			

 

"VALUATION PERIOD"
shall mean the period of ten (10) Trading Days immediately following the Clearing Date associated with the applicable Put Notice
during which the Purchase Price of the Common Stock is valued; provided, however, that if a Valuation Event occurs during any Valuation
Period, a new Valuation Period shall begin on the Trading Day immediately after the occurrence of such Valuation Event and end
on the tenth (10th) Trading Day thereafter. Investor shall notify the Company in writing of the occurrence of the Clearing
Date associated with a Put Notice. The Valuation Period shall begin the first Trading Day following such written notice from Investor.

 

    7 

    	 

    

 

ARTICLE II

 

PURCHASE AND SALE OF COMMON STOCK

 

Section 2.1           INVESTMENTS.

 

(a)          PUTS.
Upon the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), on any Put Date
the Company may exercise a Put by the delivery of a Put Notice. The number of Put Shares that Investor shall purchase pursuant
to such Put shall be determined by dividing the Investment Amount specified in the Put Notice by the Purchase Price with respect
to such Put Notice.

 

(b)          PROMISSORY NOTE.
As a condition for the execution of this Agreement by the Investor, the Company shall issue to the Investor a 10% promissory note
in the principal amount equal to $50,000.00 (the “Note”) on the Subscription Date. The Note shall have no registration
rights.

 

Section 2.2           MECHANICS.

 

(a)          PUT
NOTICE. At any time and from time to time during the Commitment Period, the Company may deliver a Put Notice to Investor, subject
to the conditions set forth in Section 7.2; provided, however, that the Investment Amount identified in the applicable Put Notice,
when taken together with all prior Put Notices, shall not exceed the Maximum Commitment Amount. On the Put Date the Company shall
deliver to Investor’s brokerage account estimated put shares equal to the Investment Amount indicated in the Put Notice divided
by the Closing Price on the Trading Day immediately preceding the Put Date, multiplied by one hundred twenty five percent (125%)
(the “Estimated Put Shares”). On the Trading Date immediately following delivery of the Estimated Put Shares, Investor
shall deliver payment by check or wire transfer to the Company an amount equal to the par value of the Estimated Put Shares (“Par
Value Payment”).

 

    8 

    	 

    

 

(b)          DATE
OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading Day it is received by facsimile or otherwise
by Investor if such notice is received on or prior to 12:00 noon New York time, or (ii) the immediately succeeding Trading Day
if it is received by facsimile or otherwise after 12:00 noon New York time on a Trading Day or at any time on a day which is not
a Trading Day.

 

(c)          FLOOR
PRICE. In the event that, during a Valuation Period, the Closing Price on any Trading Day falls to a price equal to seventy five
percent (75%) of the average of the closing trade prices for the ten (10) trading days immediately preceding the date of the Company’s
Put Notice (a “Low Bid Price”), then for each such Trading Day, the parties shall have no right to sell and shall be
under no obligation to purchase one tenth (1/10th) of the Investment Amount specified in the Put Notice, and the Investment Amount
shall accordingly be deemed reduced by such amount. In the event that during a Valuation Period there exists a Low Bid Price for
any three (3) Trading Days—not necessarily consecutive—then the balance of each party’s right and obligation
to sell and purchase the Investment Amount under such Put Notice shall terminate on such second Trading Day (“Termination
Day”), and the Investment Amount shall be adjusted to include only one-tenth (1/10th) of the initial Investment
Amount for each Trading Day during the Valuation Period prior to the Termination Day that the Bid Price equals or exceeds the Low
Bid Price.

 

Section 2.3           CLOSINGS.
At the end of the Valuation Period the Purchase Price shall be established and the number of Put Shares shall be determined for
a particular Put. If the number of Estimated Put Shares initially delivered to Investor is greater than the Put Shares purchased
by Investor pursuant to such Put, then immediately after the Valuation Period the Investor shall deliver to Company any excess
Estimated Put Shares associated with such Put. If the number of Estimated Put Shares delivered to Investor is less than the Put
Shares purchased by Investor pursuant to a Put, then immediately after the Valuation Period the Company shall deliver to Investor
the difference between the Estimated Put Shares and the Put Shares issuable pursuant to such Put. The Closing of a Put shall occur
upon the first Trading Day following the completion of the Valuation Period, whereby Investor shall deliver the Investment Amount
specified in the Put Notice, less the Par Value Payment, by wire transfer of immediately available funds to an account designated
by the Company. In lieu of delivering physical certificates representing the Common Stock issuable in accordance with clause (a)
of this Section 2.3, and provided that the Transfer Agent then is participating in the Depository Trust Company ("DTC")
Fast Automated Securities Transfer ("FAST") program, upon request of Investor, but subject to the applicable provisions
of Article VIII hereof, the Company shall use its commercially reasonable efforts to cause the Transfer Agent to electronically
transmit, prior to the applicable Closing Date, the applicable Put Shares by crediting the account of the Investor's prime broker
with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system, and provide proof satisfactory to the Investor
of such delivery. In addition, on or prior to such Closing Date, each of the Company and Investor shall deliver to each other all
documents, instruments and writings required to be delivered or reasonably requested by either of them pursuant to this Agreement
in order to implement and effect the transactions contemplated herein.

 

    9 

    	 

    

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF INVESTOR

 

Investor represents
and warrants to the Company that:

 

Section 3.1           INTENT.
Investor is entering into this Agreement for its own account and Investor has no present arrangement (whether or not legally binding)
at any time to sell the Registered Securities to or through any person or entity; provided, however, that Investor reserves the
right to dispose of the Registered Securities at any time in accordance with federal and state securities laws applicable to such
disposition.

 

Section 3.2           NO
LEGAL ADVICE FROM THE COMPANY. The Investor acknowledges that it has had the opportunity to review this Agreement and the transactions
contemplated by this Agreement with its own legal counsel and investment and tax advisors. The Investor is relying solely on such
counsel and advisors and not on any statements or representations of the Company or any of its representatives or agents for legal,
tax or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws
of any jurisdiction.

 

Section 3.3           SOPHISTICATED
INVESTOR. Investor is a sophisticated investor (as described in Rule 506(b)(2)(ii) of Regulation D) and an accredited investor
(as defined in Rule 501 of Regulation D), and Investor has such experience in business and financial matters that it is capable
of evaluating the merits and risks of an investment in the Registered Securities. Investor acknowledges that an investment in the
Registered Securities is speculative and involves a high degree of risk.

 

    10 

    	 

    

 

Section 3.4           AUTHORITY.
(a) Investor has the requisite power and authority to enter into and perform its obligations under this Agreement and the transactions
contemplated hereby in accordance with its terms; (b) the execution and delivery of this Agreement and the consummation by it of
the transactions contemplated hereby and thereby have been duly authorized by all necessary action and no further consent or authorization
of Investor or its partners is required; and (c) this Agreement has been duly authorized and validly executed and delivered by
Investor and constitutes a valid and binding obligation of Investor enforceable against it in accordance with its terms, subject
to applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors' rights
and remedies or by other equitable principles of general application.

 

Section 3.5           NOT
AN AFFILIATE. Investor is not an officer, director or "affiliate" (as that term is defined in Rule 405 of the Securities
Act) of the Company.

 

Section 3.6 ORGANIZATION
AND STANDING. Investor is a limited liability company duly organized, validly existing and in good standing under the laws of the
State of Florida and has all requisite power and authority to own, lease and operate its properties and to carry on its business
as now being conducted. Investor is duly qualified and in good standing in every jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary, other than those in which the failure so to qualify would
not have a material adverse effect on Investor.

 

Section 3.7           ABSENCE
OF CONFLICTS. The execution and delivery of this Agreement and any other document or instrument contemplated hereby, and the consummation
of the transactions contemplated hereby and thereby, and compliance with the requirements hereof and thereof, will not (a) violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on Investor, (b) violate any provision of
any indenture, instrument or agreement to which Investor is a party or is subject, or by which Investor or any of its assets is
bound, or conflict with or constitute a material default thereunder, (c) result in the creation or imposition of any lien pursuant
to the terms of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty owed by Investor to any
third party, or (d) require the approval of any third-party (that has not been obtained) pursuant to any material contract, instrument,
agreement, relationship or legal obligation to which Investor is subject or to which any of its assets, operations or management
may be subject.

 

Section 3.8           DISCLOSURE;
ACCESS TO INFORMATION. Investor had an opportunity to review copies of the SEC Documents filed on behalf of the Company and has
had access to all publicly available information with respect to the Company.

 

Section 3.9           MANNER
OF SALE. At no time was Investor presented with or solicited by or through any leaflet, public promotional meeting, television
advertisement or any other form of general solicitation or advertising.

 

    11 

    	 

    

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents
and warrants to Investor that, except as disclosed in the SEC Documents:

 

Section 4.1           ORGANIZATION
OF THE COMPANY. The Company is a corporation duly organized and validly existing and in good standing under the laws of the State
of Nevada and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now
being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary, other than those in which
the failure so to qualify would not have a Material Adverse Effect.

 

Section 4.2           AUTHORITY.
(a) The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement
and to issue the Put Shares; (b) the execution and delivery of this Agreement by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further consent
or authorization of the Company or its Board of Directors or stockholders is required; and (c) each of this Agreement and has been
duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of
general application.

 

Section 4.3           CAPITALIZATION.
As of the date hereof, the authorized capital stock of the Company consists of 750,000,000 shares of Common Stock, $0.0001 par
value per share, of which 634,345,251 shares were issued and outstanding as of June 15, 2015 and 20,000,000 shares of preferred
stock authorized with zero shares issued and outstanding at June 15, 2015.

 

    12 

    	 

    

 

Except as otherwise
disclosed in the SEC Documents or on Schedule 4.3, there are no outstanding securities which are convertible into shares
of Common Stock, whether such conversion is currently exercisable or exercisable only upon some future date or the occurrence of
some event in the future.

 

All of the outstanding
shares of Common Stock of the Company have been duly and validly authorized and issued and are fully paid and non-assessable.

 

Section 4.4           COMMON
STOCK. The Company is in full compliance with all reporting requirements of the Exchange Act, and the Company has maintained all
requirements for the continued listing or quotation of the Common Stock, and such Common Stock is currently listed or quoted on
the Principal Market which is presently the OTCQX.

 

Section 4.5           SEC
DOCUMENTS. The Company may make available to Investor true and complete copies of the SEC Documents (including, without limitation,
proxy information and solicitation materials). To the Company’s knowledge, the Company has not provided to Investor any information
that, according to applicable law, rule or regulation, should have been disclosed publicly prior to the date hereof by the Company,
but which has not been so disclosed. As of their respective dates, the SEC Documents complied in all material respects with the
requirements of the Exchange Act, and other federal laws, rules and regulations applicable to such SEC Documents, and none of the
SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
The financial statements of the Company included in the SEC Documents comply as to form and substance in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC or other applicable rules and regulations
with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles
applied on a consistent basis during the periods involved (except (a) as may be otherwise indicated in such financial statements
or the notes thereto or (b) in the case of unaudited interim statements, to the extent they may not include footnotes or may be
condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates
thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments).

 

    13 

    	 

    

 

Section 4.6           VALID
ISSUANCES. When issued and paid for as herein provided, the Put Shares shall be duly and validly issued, fully paid, and non-assessable.
The sales of the Put Shares pursuant to this Agreement, and the Company's performance of its obligations hereunder, shall not (a)
result in the creation or imposition of any liens, charges, claims or other encumbrances upon the Put Shares, or any of the assets
of the Company, or (b) entitle the holders of outstanding shares of Common Stock to preemptive or other rights to subscribe to
or acquire the Common Stock or other securities of the Company. The Put Shares shall not subject Investor to personal liability,
in excess of the subscription price by reason of the ownership thereof.

 

Section 4.7           NO
CONFLICTS. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby, including without limitation the issuance of the Put Shares, do not and will not (a) result in
a violation of the Company’s Articles of Incorporation or By-Laws or (b) conflict with, or constitute a material default
(or an event that with notice or lapse of time or both would become a material default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any material agreement, indenture, instrument or any "lock-up"
or similar provision of any underwriting or similar agreement to which the Company is a party, or (c) result in a violation of
any federal, state or local law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations)
applicable to the Company or by which any property or asset of the Company is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material
Adverse Effect) nor is the Company otherwise in violation of, conflict with or in default under any of the foregoing. The business
of the Company is not being conducted in violation of any law, ordinance or regulation of any governmental entity, except for possible
violations that either singly or in the aggregate do not and will not have a Material Adverse Effect. The Company is not required
under federal, state or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement
or issue and sell the Common Stock in accordance with the terms hereof (other than any SEC, FINRA or state securities filings that
may be required to be made by the Company subsequent to any Closing, any registration statement that may be filed pursuant hereto);
provided that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy
of the relevant representations and agreements of Investor herein.

 

Section 4.8           NO
MATERIAL ADVERSE CHANGE. Since February 28, 2015 no event has occurred that would have a Material Adverse Effect on the Company.

 

    14 

    	 

    

 

Section 4.9           LITIGATION
AND OTHER PROCEEDINGS. Except as disclosed in the Company’s SEC filings, there are no lawsuits or proceedings pending or
to the knowledge of the Company threatened, against the Company, nor has the Company received any written or oral notice of any
such action, suit, proceeding or investigation, which would have a Material Adverse Effect. No judgment, order, writ, injunction
or decree or award has been issued by or, so far as is known by the Company, requested of any court, arbitrator or governmental
agency which would have a Material Adverse Effect.

 

Section 4.10         DILUTION.
The number of shares of Common Stock issuable as Put Shares may increase substantially in certain circumstances, including, but
not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines during the period between the
Effective Date and the end of the Commitment Period. The Company’s executive officers and directors have studied and fully
understand the nature of the transactions contemplated by this Agreement and recognize that they have a potential dilutive effect.
The board of directors of the Company has concluded in its good faith business judgment that such issuance is in the best interests
of the Company. The Company specifically acknowledges that, subject to Section 2.2(c), its obligation to issue the Put Shares is
binding upon the Company and enforceable regardless of the dilution such issuance may have on the ownership interests of other
shareholders of the Company.

 

ARTICLE V

 

COVENANTS OF INVESTOR

 

Section 5.1           COMPLIANCE
WITH LAW; TRADING IN SECURITIES. Investor's trading activities with respect to shares of the Common Stock will be in compliance
with all applicable state and federal securities laws, rules and regulations and the rules and regulations of FINRA and the Principal
Market on which the Common Stock is listed or quoted.

 

Section 5.2           SHORT
SALES AND CONFIDENTIALITY. Neither Investor nor any affiliate of the Investor acting on its behalf or pursuant to any understanding
with it will execute any Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes
hereof, and in accordance with Regulation SHO, the sale after delivery of a Put Notice of such number of shares of Common Stock
reasonably expected to be purchased under a Put Notice shall not be deemed a Short Sale.

 

Other than to other
Persons party to this Agreement, Investor has maintained the confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction).

 

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ARTICLE VI

 

COVENANTS OF THE COMPANY

 

Section 6.1           RESERVATION
OF COMMON STOCK. The Company will, from time to time as needed in advance of a Closing Date, reserve and keep available until the
consummation of such Closing, free of preemptive rights sufficient shares of Common Stock for the purpose of enabling the Company
to satisfy its obligation to issue the Put Shares to be issued in connection therewith. The number of shares so reserved from time
to time, as theretofore increased or reduced as hereinafter provided, may be reduced by the number of shares actually delivered
hereunder.

 

Section 6.2           LISTING
OF COMMON STOCK. If the Company applies to have the Common Stock traded on any other Principal Market, it shall include in such
application the Put Shares, and shall take such other action as is necessary or desirable in the reasonable opinion of Investor
to cause the Common Stock to be listed on such other Principal Market as promptly as possible. The Company shall use its commercially
reasonable efforts to continue the listing and trading of the Common Stock on the Principal Market (including, without limitation,
maintaining sufficient net tangible assets) and will comply in all respects with the Company's reporting, filing and other obligations
under the bylaws or rules of the FINRA and the Principal Market.

 

Section 6.3           CERTAIN
AGREEMENTS. So long as this Agreement remains in effect, the Company covenants and agrees that it will not, without the prior written
consent of the Investor, enter into any other equity line of credit agreement with a third party during the Commitment Period having
terms and conditions substantially comparable to this Agreement. For the avoidance of doubt, nothing contained in the Transaction
Documents shall restrict, or require the Investor's consent for, any agreement providing for the issuance or distribution of (or
the issuance or distribution of) any equity securities pursuant to any agreement or arrangement that is not commonly understood
to be an "equity line of credit."

 

    16 

    	 

    

 

ARTICLE VII

 

CONDITIONS TO DELIVERY OF

 

PUT NOTICES AND CONDITIONS TO CLOSING

 

Section 7.1           CONDITIONS
PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL COMMON STOCK. The obligation hereunder of the Company to issue and
sell the Put Shares to Investor is subject to the satisfaction of each of the conditions set forth below.

 

(a)          ACCURACY
OF INVESTOR'S REPRESENTATIONS AND WARRANTIES. The representations and warranties of Investor shall be true and correct in all material
respects as of the date of this Agreement and as of the date of each such Closing as though made at each such time.

 

(b)          PERFORMANCE
BY INVESTOR. Investor shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by Investor at or prior to such Closing.

 

(c)          Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any
Put Shares, if the issuance of such shares would exceed the aggregate number of shares of Common Stock which the Company may issue
without breaching the Company’s obligations under the rules or regulations of the Principal Market (the “Exchange
Cap”).

 

Section 7.2           CONDITIONS
PRECEDENT TO THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE AND THE OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The right
of the Company to deliver a Put Notice and the obligation of Investor hereunder to acquire and pay for the Put Shares is subject
to the satisfaction of each of the following conditions:

 

(a)          EFFECTIVE
REGISTRATION STATEMENT. The Registration Statement, and any amendment or supplement thereto, shall remain effective for the sale
by Investor of the Registered Securities subject to such Put Notice, and (i) neither the Company nor Investor shall have received
notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise
has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has
threatened to do so and (ii) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or
related prospectus shall exist.

 

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(b)          ACCURACY
OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and correct in
all material respects (except for representations and warranties specifically made as of a particular date), except for any conditions
which have temporarily caused any representations or warranties herein to be incorrect and which have been corrected with no continuing
impairment to the Company or Investor.

 

(c)          PERFORMANCE
BY THE COMPANY. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Company.

 

(d)          NO
INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or adopted by any court or governmental authority of competent jurisdiction that prohibits or directly and materially adversely
affects any of the transactions contemplated by this Agreement, and no proceeding shall have been commenced that may have the effect
of prohibiting or materially adversely affecting any of the transactions contemplated by this Agreement.

 

(e)          ADVERSE
CHANGES. Since the date of filing of the Company's most recent SEC Document, no event that had or is reasonably likely to have
a Material Adverse Effect has occurred.

 

(f)          NO
SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have been suspended by the SEC,
the Principal Market or the FINRA and the Common Stock shall have been approved for listing or quotation on and shall not have
been delisted from the Principal Market.

 

(g)          [INTENTIONALLY
OMITTED]

 

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(h)          TEN
PERCENT LIMITATION. On each Closing Date, the number of Put Shares then to be purchased by Investor shall not exceed the number
of such shares that, when aggregated with all other shares of Common Stock then owned by Investor beneficially or deemed beneficially
owned by Investor, would result in Investor owning more than 9.99% of all of such Common Stock as would be outstanding on such
Closing Date, as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. For purposes
of this Section, in the event that the amount of Common Stock outstanding as determined in accordance with Section 16 of the Exchange
Act and the regulations promulgated thereunder is greater on a Closing Date than on the date upon which the Put Notice associated
with such Closing Date is given, the amount of Common Stock outstanding on such Closing Date shall govern for purposes of determining
whether Investor, when aggregating all purchases of Common Stock made pursuant to this Agreement, would own more than 9.99% of
the Common Stock following such Closing Date.

 

(i)          Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any Put
Shares, if the issuance of such shares would exceed the Exchange Cap.

 

(j)          NO
KNOWLEDGE. The Company shall have no knowledge of any event more likely than not to have the effect of causing such Registration
Statement to be suspended or otherwise ineffective (which event is more likely than not to occur within the fifteen (15) Trading
Days following the Trading Day on which such Put Notice is deemed delivered).

 

(k)          NO
VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of shares of Common Stock with respect to the applicable Closing, if
any, shall not violate the shareholder approval requirements of the Principal Market.

 

(l)          NO
VALUATION EVENT. No Valuation Event shall have occurred since the Put Date.

 

(m)          OTHER.
On the date of delivery of each Put Notice, Investor shall have received a certificate in substantially the form and substance
of Exhibit B hereto, executed by an executive officer of the Company and to the effect that all the conditions to such Closing
shall have been satisfied as at the date of each such certificate.

 

    19 

    	 

    

 

ARTICLE VIII

 

LEGENDS

 

Section 8.1           NO
STOCK LEGEND OR STOCK TRANSFER RESTRICTIONS. No legend shall be placed on the share certificates representing the Put Shares.

 

Section 8.2           INVESTOR'S
COMPLIANCE. Nothing in this Article VIII shall affect in any way Investor's obligations under any agreement to comply with all
applicable securities laws upon the sale of the Common Stock.

 

ARTICLE IX

 

NOTICES; INDEMNIFICATION

 

Section 9.1            NOTICES.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by
hand delivery, telegram, facsimile, or email as a PDF, addressed as set forth below or to such other address as such party shall
have specified most recently by written notice given in accordance herewith. Any notice or other communication required or permitted
to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by facsimile, with accurate confirmation generated
by the transmitting facsimile machine, or email as a PDF, at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is to be received) or (ii) on the second business day
following the date of mailing by express courier service or on the fifth business day after deposited in the mail, in each case,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.

 

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The addresses for such communications shall
be:

 

If to the Company:

 

TIERRA GRANDE RESOURCES INC.

 

________________________

 

________________________

 

Attn: ____________

 

Chief Executive Officer

 

Copy to (which shall not constitute notice):

 

______________________

 

______________________

 

______________________

 

Attn: _______________

 

Tel: _______________

 

Fax: _______________

 

If to Investor:

 

Tarpon Bay Partners LLC

 

17210 Germano Court

 

Naples, FL 34110

 

Tel:

 

Fax:

 

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Either party hereto may from time to time
change its address or facsimile number for notices under this Section 9.1 by giving at least ten (10) days' prior written notice
of such changed address or facsimile number to the other party hereto.

 

Section 9.2           INDEMNIFICATION.
Each party (an “Indemnifying Party”) agrees to indemnify and hold harmless the other party along with its officers,
directors, employees, and authorized agents, and each Person or entity, if any, who controls such party within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any Damages, joint
or several, and any action in respect thereof to which the Indemnified Party becomes subject to, resulting from, arising out of
or relating to (i) any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or agreement
on the part of Indemnifying Party contained in this Agreement, (ii) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or any post-effective amendment thereof or supplement thereto, or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading,
(iii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or contained
in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the
SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the
light of the circumstances under which the statements therein were made, not misleading, or (iv) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation under the Securities
Act, the Exchange Act or any state securities law, as such Damages are incurred, except to the extent such Damages result primarily
from Indemnified Party's failure to perform any covenant or agreement contained in this Agreement or Indemnified Party's negligence,
recklessness or bad faith in performing its obligations under this Agreement; provided, however, that the foregoing indemnity agreement
shall not apply to any Damages of an Indemnified Party to the extent, but only to the extent, arising out of or based upon any
untrue statement or alleged untrue statement or omission or alleged omission made by an Indemnifying Party in reliance upon and
in conformity with written information furnished to the Indemnifying Party by the Indemnified Party expressly for use in the Registration
Statement, any post-effective amendment thereof or supplement thereto, or any preliminary prospectus or final prospectus (as amended
or supplemented).

 

Section 9.3           METHOD
OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any Indemnified Party (as defined below) under Section 9.2
shall be asserted and resolved as follows:

 

    22 

    	 

    

 

(a)          In
the event any claim or demand in respect of which an Indemnified Party might seek indemnity under Section 9.2 is asserted against
or sought to be collected from such Indemnified Party by a person other than a party hereto or an affiliate thereof (a "THIRD
PARTY CLAIM"), the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any,
and specifying the nature of and basis for such Third Party Claim and for the Indemnified Party's claim for indemnification that
is being asserted under any provision of Section 9.2 against an Indemnifying Party, together with the amount or, if not then reasonably
ascertainable, the estimated amount, determined in good faith, of such Third Party Claim (a "CLAIM NOTICE") with reasonable
promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable promptness after
the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated to indemnify the
Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party's ability to defend has been
prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party as soon as practicable
within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity
Notice (as defined below) (the "DISPUTE PERIOD") whether the Indemnifying Party disputes its liability or the amount
of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying Party desires, at its sole cost and expense,
to defend the Indemnified Party against such Third Party Claim.

 

(i)          If
the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the
Indemnified Party with respect to the Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have
the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying
Party, such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted by
the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the
consent of the Indemnified Party in the case of any settlement that provides for any relief other than the payment of monetary
damages or that provides for the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full
pursuant to Section 9.2). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise
or settlement thereof; provided, however, that the Indemnified Party may, at the sole cost and expense of the Indemnified Party,
at any time prior to the Indemnifying Party's delivery of the notice referred to in the first sentence of this clause (i), file
any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary or
appropriate to protect its interests; and provided further, that if requested by the Indemnifying Party, the Indemnified Party
will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting
any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may participate in, but not control,
any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this clause (i), and except
as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation.
Notwithstanding the foregoing, the Indemnified Party may takeover the control of the defense or settlement of a Third Party Claim
at any time if it irrevocably waives its right to indemnity under Section 9.2 with respect to such Third Party Claim.

 

    23 

    	 

    

 

(ii)         If
the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend
the Third Party Claim pursuant to Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute vigorously
and diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within the Dispute
Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the
Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in a reasonable
manner and in good faith or will be settled at the discretion of the Indemnified Party(with the consent of the Indemnifying Party,
which consent will not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying
Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and
its counsel in contesting any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions
of this clause (ii), if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying
Party disputes its liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third Party
Claim and if such dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying
Party will not be required to bear the costs and expenses of the Indemnified Party's defense pursuant to this clause (ii) or of
the Indemnifying Party's participation therein at the Indemnified Party's request, and the Indemnified Party shall reimburse the
Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection with such litigation.
The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant
to this clause (ii), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.

 

(iii)        If
the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to
the Indemnified Party with respect to the Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within the
Dispute Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with
respect to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability
of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified
Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such
claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute;
provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall
be entitled to institute such legal action as it deems appropriate.

 

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(b)          In
the event any Indemnified Party should have a claim under Section 9.2 against the Indemnifying Party that does not involve a Third
Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under Section 9.2 specifying the
nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined
in good faith, of such claim (an "INDEMNITY NOTICE") with reasonable promptness to the Indemnifying Party. The failure
by any Indemnified Party to give the Indemnity Notice shall not impair such party's rights hereunder except to the extent that
the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies the Indemnified
Party that it does not dispute the claim or the amount of the claim described in such Indemnity Notice or fails to notify the Indemnified
Party within the Dispute Period whether the Indemnifying Party disputes the claim or the amount of the claim described in such
Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a liability of the Indemnifying
Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If
the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that
if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute
such legal action as it deems appropriate.

 

(c)          The
Indemnifying Party agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

 

(d)          The
indemnity provisions contained herein shall be in addition to (i) any cause of action or similar rights of the Indemnified Party
against the Indemnifying Party or others, and (ii) any liabilities the Indemnifying Party may be subject to.

 

    25 

    	 

    

 

ARTICLE X

 

MISCELLANEOUS

 

Section 10.1         GOVERNING
LAW; JURISDICTION. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York without
regard to the principles of conflicts of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the
United States Federal and state courts located in New York County, State of New York with respect to any dispute arising under
this Agreement, the agreements entered into in connection herewith or the transactions contemplated hereby or thereby.

 

Section 10.2         JURY
TRIAL WAIVER. The Company and the Investor hereby waive a trial by jury in any action, proceeding or counterclaim brought by either
of the parties hereto against the other in respect of any matter arising out of or in connection with the Transaction Documents.

 

Section 10.3         ASSIGNMENT.
This Agreement shall be binding upon and inure to the benefit of the Company and Investor and their respective successors. Neither
this Agreement nor any rights of Investor or the Company hereunder may be assigned by either party to any other person.

 

Section 10.4         THIRD
PARTY BENEFICIARIES. This Agreement is intended for the benefit of the Company and Investor and their respective successors, and
is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section 10.5         TERMINATION.
The Company may terminate this Agreement at any time by written notice to the Investor. Additionally, this Agreement shall terminate
at the end of Commitment Period or as otherwise provided herein; provided, however, that the provisions of Articles IX, and Sections
10.1 and 10.2 shall survive the termination of this Agreement for a period of twenty four (24) months.

 

Section 10.6         ENTIRE
AGREEMENT, AMENDMENT; NO WAIVER. This Agreement and the instruments referenced herein contain the entire understanding of the Company
and Investor with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor Investor makes any representation, warranty, covenant or undertaking with respect to such matters. This Agreement
may not be amended.

 

Section 10.7         FEES
AND EXPENSES. The Company agrees to pay its own expenses in connection with the preparation of this Agreement and performance of
its obligations hereunder. The Company shall pay all stamp or other similar taxes and duties levied in connection with issuance
of the Put Shares pursuant hereto.

 

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Section 10.8         COUNTERPARTS.
This Agreement may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall
be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and
all of which together shall constitute one and the same instrument. This Agreement may be delivered to the other parties hereto
by facsimile transmission or email of a copy of this Agreement bearing the signature of the parties so delivering this Agreement.

 

Section 10.9         SEVERABILITY.
In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision; provided that such severability shall be
ineffective if it materially changes the economic benefit of this Agreement to any party.

 

Section 10.10         FURTHER
ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

Section 10.11         NO
STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party.

 

Section 10.12         EQUITABLE
RELIEF. The Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations
under this Agreement, any remedy at law may prove to be inadequate relief to Investor. The Company therefore agrees that Investor
shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

 

Section 10.13         TITLE
AND SUBTITLES. The titles and subtitles used in this Agreement are used for the convenience of reference and are not to be considered
in construing or interpreting this Agreement.

 

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Section 10.14         REPORTING
ENTITY FOR THE COMMON STOCK. The reporting entity relied upon for the determination of the Closing Price for the Common Stock on
any given Trading Day for the purposes of this Agreement shall be Bloomberg Finance L.P. or any successor thereto. The written
mutual consent of Investor and the Company shall be required to employ any other reporting entity.

 

Section 10.15         PUBLICITY.
The Company and Investor shall consult with each other in issuing any press releases or otherwise making public statements with
respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such public
statement without the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed,
except that no prior consent shall be required if such disclosure is required by law, in which such case the disclosing party shall
provide the other parties with prior notice of such public statement. Notwithstanding the foregoing, the Company shall not publicly
disclose the name of Investor without the prior written consent of such Investor, except to the extent required by law. Investor
acknowledges that this Agreement and all or part of the Transaction Documents may be deemed to be "material contracts"
as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents
as exhibits to reports or registration statements filed under the Securities Act or the Exchange Act. Investor further agrees that
the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with
its counsel.

 

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[SIGNATURE PAGE]

 

IN WITNESS WHEREOF,
the parties hereto have caused this Equity Purchase Agreement to be executed by the undersigned, thereunto duly authorized, as
of the date first set forth above.

 

	 	TARPON BAY PARTNERS LLC
	 	 	 
	 	By:	/s/
	 	 	 
	 	 	Name:  Stephen Hicks
	 	 	 
	 	 	Title: Manager
	 	 	 
	 	TIERRA GRANDE RESOURCES INC.
	 	 	 
	 	By:	/s/
	 	 	 
	 	 	Name: Matthew Carona
	 	 	 
	 	 	Title: Chief Executive Officer

 

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