Document:

Exhibit 10.5

 

EXECUTION VERSION

 

PLEDGE AGREEMENT

 

This PLEDGE AGREEMENT
(this “Agreement”), dated as of March 8, 2013, made by OLEG FIRER,
an individual having an address at 3363 NE 163rd Street, Suite 705, North Miami Beach, Florida 33160 and Georgia
Notes 18 LLC, a Florida limited liability company, having an address at 4000 NE 168th Street, Unit 101, North
Miami Beach, FL 33160 (each, a “Pledgor” and collectively, the “Pledgors”), for the benefit
of NET ELEMENT INTERNATIONAL INC., a Florida corporation, having an address at 1450 S. Miami Avenue, Miami, Florida 33130 (“Lender”).

 

WITNESSETH:

  

A.                 Pursuant to that
certain Secured Revolving Note, dated of even date herewith, executed by UNIFIED PAYMENTS, LLC, a Delaware limited liability
company (“Borrower”) and payable to the order of Lender in the original principal amount of SEVEN HUNDRED
FIFTY THOUSAND DOLLARS ($750,000) (together with all renewals, modifications, increases and extensions thereof, the “Note”),
Borrower has become indebted, and may from time to time be further indebted, to Lender with respect to a loan (the “Loan”)
which is made pursuant to that certain Loan Agreement, dated of even date herewith, between Borrower, Guarantors and Lender (as
the same may be amended, modified, supplemented, restated, replaced or otherwise modified from time to time, the “Loan
Agreement”), which Loan is guaranteed pursuant to that certain Non-Recourse Guaranty, dated of even date herewith, between
the Pledgors and Lender (as the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time,
the “Guaranty”), and further evidenced, secured or governed by other instruments and documents executed in connection
with the Loan (together with the Note, the Loan Agreement and the Pledge Agreement, collectively, the “Loan Documents”).
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Agreement.

 

B.                 Oleg Firer is the direct owner of
75.5% of the issued and outstanding membership interests in Borrower and Mr. Firer will benefit from Lender’s making of the
Loan.

 

C.                 Georgia Notes 18 LLC is the direct
owner of 24.5% of the issued and outstanding membership interests in Borrower and Georgia Notes 18 LLC will benefit from Lender's
making of the Loan.

 

D.                 It is a condition precedent to the
obligation of Lender to make the Loan that Pledgors guaranty to Lender payment and performance of the Guaranteed Obligations (as
defined herein) pursuant to the Guaranty;

 

E.                 This Agreement is delivered as security
for the Guaranty;

 

F.                 If either Pledgor shall fail to pay
the Guaranteed Obligations under the Guaranty as and when due thereunder, Lender shall have the right to exercise its rights and
remedies under this Agreement; and

 

    	 

    	 

    

 

G.                 Lender is not willing to make the
Loan, or otherwise extend credit, to Borrower unless Pledgor pledges to Lender, and grants a security interest in, all of Pledgor’s
right, title and interest in the Pledged Company Interests (as defined herein) to secure Pledgor’s payment of the Guaranteed
Obligations as and when due.

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt
and sufficiency of which being hereby acknowledged, and to induce Lender to make the Loan pursuant to the Loan Agreement, the Pledgors
hereby agree with Lender as follows:

 

1.                 
Defined Terms. (a) Unless otherwise provided herein, all capitalized terms used but not defined in this Agreement
shall have the respective meanings ascribed thereto in the Loan Agreement and, for the purposes of this Agreement, the following
terms shall have the following meanings:

 

“Borrower
Operating Agreement” means that certain Amended and Restated Limited Liability Company Agreement, dated as of December
21, 2012, as the same may be amended, modified, supplemented, replaced or otherwise modified from time to time.

 

“Code”
means the Uniform Commercial Code from time to time in effect in the State of Florida.

 

“Collateral”
has the meaning ascribed to such term in Section 2 hereof.

 

“Event of
Default” shall have the meaning ascribed to such term in the Loan Agreement.

 

“Guaranteed
Obligations” shall have the meaning ascribed to such term in the Guaranty.

 

“Membership
Certificate” has the meaning ascribed to it in Section 2(b) hereof.

 

“Pledged Company
Interests” means all of the membership interests of Pledgors in Borrower, together with all membership interest certificates,
options or rights of any nature whatsoever which may be issued or granted by Borrower to Pledgors while this Agreement is in effect.

 

“Proceeds”
means all “proceeds” as such term is defined in Section 9-102(a)(64) of the Code on the date hereof and, in any event,
shall include, without limitation, all dividends or other income from the Pledged Company Interests, collections thereon or distributions
with respect thereto.

 

“Termination
Date” means the earlier of (a) the payment and satisfaction in full of the Guaranteed Obligations and (b) the date on
which Lender forecloses on the Collateral or accepts a voluntary surrender thereof in accordance with the Code.

 

(b)              
The words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and section, subsection,
schedule and exhibit references are to this Agreement unless otherwise specified. The word “including” when used in
this Agreement shall be deemed to be followed by the words “but not limited to.”

 

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2.                 
Pledge; Grant of Security Interest; Delivery of Collateral. (a) Pledgors hereby pledge and grant to Lender, as collateral
security for the prompt performance, observance and indefeasible payment in full of all of the Guaranteed Obligations when due
(whether at the stated maturity, by acceleration or otherwise), a first priority security interest in all of each Pledgors' right,
title and interest to the following, whether now owned by such Pledgor or hereafter acquired and whether now existing or hereafter
coming into existence (collectively, the “Collateral”):

 

(i)                
all Pledged Company Interests and all other ownership interests of Pledgors in Borrower;

 

(ii)              
all securities, moneys or property representing dividends or interest on any of the Pledged Company Interests, or representing
a distribution in respect of the Pledged Company Interests, or resulting from a split-up, revision, reclassification or other like
change of the Pledged Company Interests or otherwise received in exchange therefor, and any subscription warrants, rights or options
issued to the holders of, or otherwise in respect of, the Pledged Company Interests;

 

(iii)            
all right, title and interest of Pledgors in, to and under any policy of insurance payable by reason of loss or damage to
the Pledged Company Interests and any other Collateral;

 

(iv)            
all “securities,” “accounts,” “general intangibles,” “instruments” and “investment
property” (in each case, as defined in the Code) constituting or relating to the foregoing;

 

(v)              
all right, title and interest of Pledgors in, to and under the Borrower Operating Agreement or any other agreement or instrument
relating to the Pledged Company Interests, including, without limitation, (A) all rights of Pledgors to receive moneys or distributions
with respect to the Pledged Company Interests due and to become due under or pursuant to the Borrower Operating Agreement, (B)
all rights of Pledgors to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Pledged Company
Interests, (C) all claims of Pledgors for damages arising out of or for breach of or default under the Borrower Operating Agreement,
(D) any right of Pledgors to perform under the Borrower Operating Agreement and to compel performance and otherwise exercise all
rights and remedies thereunder, and (E) all of the right, title and interest of Pledgors as members to participate in the operation
or management of Borrower and all of Pledgors' ownership interests under the Borrower Operating Agreement; and

 

(vi)            
all Proceeds of any of the foregoing property of Pledgors.

 

(b)              
Delivery of the Collateral. All certificates or instruments representing or evidencing the Collateral shall be delivered
to and held by or on behalf of Lender pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied
by duly executed instruments of transfer or assignments in blank, all in form and substance reasonably satisfactory to Lender.
Concurrently with the execution and delivery of this Agreement, Pledgors shall deliver to Lender a certificate evidencing the Pledged
Company Interests (which certificate shall constitute a “security certificate” (as defined in the Code) (“the
“Membership Certificate”), the form of which is attached hereto as Exhibit A. The Pledged Company Interests
are “securities” within the meaning of Sections 8-l02(a)(15)
and 8-103 of the Code. The Borrower’s Operating Agreement and the Membership Certificate each state that the Pledged
Company Interests are “securities” as such term is defined in Article 8 of the UCC as in effect in the State of Delaware.

 

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(c)               
If either Pledgor shall fail to pay the Guaranteed Obligations under the Guaranty as and when due thereunder following the
occurrence of a Bad Faith Act (as such term is defined in the Guaranty), Lender shall have the right, upon written notice to Pledgors,
to transfer to or to register in the name of Lender or its nominee any or all of the Collateral. Concurrently with the execution
and delivery of this Agreement, Pledgors shall deliver to Lender an assignment of membership interest endorsed by each Pledgor
in blank (an “Assignment of Interest”), in the form set forth on Exhibit B hereto, for the Pledged Company
Interests, transferring all of the Pledged Company Interests in blank, duly executed by Pledgor and undated. Lender shall have
the right, after a Pledgor fails to pay the Guaranteed Obligations under the Guaranty as and when due thereunder, to transfer to,
and to designate on a Pledgor’s Assignment of Interest, any Person to whom the Pledged Company Interests are sold in accordance
with the provisions of this Agreement and the Code. In addition, Lender shall have the right, at Lender’s sole cost and expense,
at any time to exchange any Assignment of Interest representing or evidencing the Pledged Company Interests or any portion thereof
for one or more additional or substitute Assignments of Interest representing or evidencing smaller or larger percentages of the
Pledged Company Interests represented or evidenced thereby, subject to the terms thereof.

 

(d)              
Pledgors shall promptly deliver to Lender, or cause Borrower or any other entity issuing the Collateral to deliver directly
to Lender, share certificates or other instruments representing any Collateral acquired or received after the date of this Agreement
with a stock or bond power duly executed by Pledgors in the form attached as the reverse side to the Membership Certificate attached
as Exhibit A hereto. If at any time Lender notifies Pledgors that it reasonably requires additional stock or bond powers
endorsed in blank, Pledgors shall promptly execute in blank and deliver the requested stock power to the Lender.

 

(e)               
This Agreement is executed only as security for the payment of the Guaranteed Obligations and, therefore, the execution
and delivery of this Agreement shall not subject Lender to, or transfer or pass to Lender, or in any way affect or modify, the
liability of Pledgors under the Borrower Operating Agreement. In no event shall the acceptance of this Agreement by Lender or the
exercise by Lender of any rights hereunder or assigned hereby constitute an assumption of any liability or obligation of Pledgors
to, under or in connection with the Borrower Operating Agreement.

 

3.                 
Representations and Warranties. Each Pledgor represents and warrants as of the date hereof that:

 

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(a)               
Benefit. The Pledgors, taken together, are the owners of 100% of the issued and outstanding membership interests
of Borrower and have received, or will receive, direct or indirect benefit from the making of the Loan.

 

(b)              
Familiarity and Reliance. Each Pledgor is familiar with, and has independently reviewed books and records regarding,
the financial condition of Borrower and is familiar with the value of any and all Collateral intended to be created as security
for the Guaranty or Guaranteed Obligations; provided, however, neither Pledgor is relying on such financial condition or the Collateral
as an inducement to enter into this Agreement.

 

(c)               
No Representation By Lender. Neither Lender nor any other party has made any representation, warranty or statement
to Pledgor in order to induce Pledgor to execute this Agreement, except to extend the Loan in accordance with the terms of the
Loan Agreement.

 

(d)              
[Reserved]

 

(e)               
Legality. The execution, delivery and performance by Pledgor of this Agreement and the consummation of the transactions
contemplated hereunder do not and will not contravene or conflict with any law, statute or regulation whatsoever to which Pledgor
is subject, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under,
or result in the breach of, any indenture, mortgage, charge, lien, contract, agreement or other instrument to which Pledgor is
a party or which may be applicable to Pledgor. This Agreement is a legal and binding obligation of Pledgor and is enforceable against
Pledgor in accordance with its terms, except as limited by principles of equity bankruptcy, insolvency or other laws of general
application relating to the enforcement of creditors’ rights.

 

(f)               
Survival. All representations and warranties made by Pledgor herein shall survive the execution hereof.

 

(g)              
Approvals. No authorizations, approvals and consents of, and no filings and registrations with, any governmental
or regulatory authority or agency that have not been obtained are necessary for (i) the execution, delivery or performance
by Pledgor of this Agreement or for the validity or enforceability thereof, (ii) the grant by Pledgor of the assignments and security
interests granted hereby, or the pledge by Pledgor of the Collateral pursuant hereto, (iii) the perfection or maintenance of the
pledge, assignment and security interest created hereby (including the first priority nature of such pledge, assignment and security
interest) except for the filing of financing statements under the Uniform Commercial Code, or (iv) the exercise by Lender of all
rights and remedies in respect of the Collateral pursuant to this Agreement.

 

(h)              
Ownership. Pledgor owns all of the membership interests in Borrower. Pledgor has good and indefeasible title to the
Collateral, free and clear of all pledges, liens, mortgages, hypothecations, security interests, charges, options or other encumbrances
whatsoever, except the lien and security interest created by this Agreement. Except as permitted in this Agreement, Pledgor shall
not, directly or indirectly, sell, assign, transfer or otherwise dispose of, or grant any option with respect to the Collateral.
The Pledged Company Interests are not and will not be subject to any contractual restriction upon the transfer thereof (except
for any such restrictions contained herein or in the other Loan Documents and as may be set forth in the Borrower Operating Agreement)
and under applicable federal securities laws.

 

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(i)                
Principal Place of Business and State of Organization. Pledgors' principal place of business is c/o Unified Payments,
3363 NE 163rd Street, Suite 750, North Miami Beach, Florida 33160. Pledgors will not change Pledgors' principal place of business
unless Pledgors have previously notified Lender thereof and taken such action as is necessary or reasonably requested by Lender
to cause the security interest of Lender in the Collateral to continue to be perfected.

 

(j)                
[Reserved]

 

(k)              
Authorization. Each Pledgor authorizes Lender to: (i) subject to the terms and provisions of Section 6 hereof,
perform any and all other acts which Lender in good faith deems reasonably necessary for the protection and preservation of the
Collateral or its value or Lender’s security interest therein, including, without limitation, if a Pledgor fails to pay the
Guaranteed Obligations under the Guaranty as and when due thereunder, transferring, registering or arranging for the transfer or
registration of the Collateral to or in Lender’s own name and receiving the income therefrom as additional security for the
Guaranteed Obligations, as set forth more fully in Section 5(b) hereof, and (ii) pay any third party charges or expenses
which Lender deems reasonably necessary for the foregoing purpose, but without any obligation on the part of Lender to do so (and
any amounts so paid shall constitute Guaranteed Obligations hereunder and under the Guaranty). If any of the Pledged Company Interests
ever becomes certificated, then upon delivery of the certified Pledged Company Interests to Lender, Pledgor authorizes Lender to
store, deposit and safeguard the Collateral. Any obligation of Lender for the reasonable care of the Collateral in Lender’s
possession shall be limited to the same degree of care which Lender uses for similar property of its own account.

 

(l)                
Delivery. Pledgors have delivered to Lender true, correct and complete copies of the Borrower Operating Agreement
and its certificate of formation. There are and shall be no other agreements governing the formation or organization of Borrower
and, with respect to Pledgors, there are and shall be no other terms of the membership interests owned by Pledgor in Borrower.

 

(m)            
Acknowledgment and Consent of Borrower. Pledgor has delivered to Lender an acknowledgement and consent executed by
Borrower in the form of Exhibit C attached hereto and made a part hereof.

 

4.                 
Covenants. Pledgor covenants and agrees with Lender that, from and after the date of this Agreement until the Termination
Date:

 

(a)               
Acknowledgements of Parties. If Pledgor shall, as a result of its ownership of the Pledged Company Interests, become
entitled to receive or shall receive any regular membership certificate (including, without limitation, any certificate representing
a dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate issued
in connection with any reorganization), option or rights, whether in addition to, in substitution of, as a conversion of, or in
exchange for any shares of the Pledged Company Interests, or otherwise in respect thereof, Pledgor shall accept the same as Lender’s
agent, hold the same in trust for Lender and deliver the same forthwith to Lender in the exact form received, duly endorsed by
Pledgor to Lender, if required, together with an undated regular membership interest power covering such certificate duly executed
in blank and with, if Lender so requests, signature guaranteed, to be held by Lender hereunder as additional security for the Guaranteed
Obligations. Any sums paid to Pledgor upon or in respect of the Pledged Company Interests upon the liquidation or dissolution of
Borrower shall be paid over to Lender to be held by it hereunder as additional security for the Guaranteed Obligations, and in
case any distribution of capital shall be made on or in respect of the Pledged Company Interests or any property shall be distributed
upon or with respect to the Pledged Company Interests pursuant to the recapitalization or reclassification of the capital of Borrower
or pursuant to the reorganization thereof, the property so distributed shall be delivered to Lender to be held by it, subject to
the terms hereof, as additional security for the Guaranteed Obligations. If any sums of money or property so paid or distributed
in respect of the Pledged Company Interests shall be received by Pledgor, Pledgor shall, until such money or property is paid or
delivered to Lender, hold such money or property in trust for Lender, segregated from other funds of Pledgor, as additional security
for the Guaranteed Obligations.

 

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(b)              
Without the prior written consent of Lender, Pledgor shall not, directly or indirectly (i) vote to enable, or take any other
action to permit, Borrower to issue any membership interests, or to issue any other securities convertible into or granting the
right to purchase or exchange for any membership interests in Borrower, or (ii) except as permitted by the Loan Agreement,
sell, assign, transfer, exchange or otherwise dispose of, or grant any option with respect to, the Collateral, or (iii) create,
incur, authorize or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Collateral,
or any interest therein, except for the Lien provided for by this Agreement. Pledgor shall defend the right, title and interest
of Lender in and to the Collateral against the claims and demands of all Persons whomsoever.

 

(c)               
At any time and from time to time, upon the written request of Lender, and at the sole expense of Pledgor, Pledgor shall
promptly and duly give, execute, deliver file and/or record such further instruments and documents and take such further actions
as Lender may reasonably request for the purposes of obtaining, creating, perfecting, validating or preserving the full benefits
of this Agreement and of the rights and powers herein granted, including, without limitation, filing UCC financing or continuation
statements. Pledgor hereby authorizes Lender to file any such financing statement or continuation statement without the signature
of Pledgor to the extent permitted by law. If any amount payable under or in connection with any of the Collateral shall be or
become evidenced by any promissory note, other instrument or chattel paper, such note, instrument or chattel paper shall be promptly
delivered to Lender and duly endorsed in a manner reasonably satisfactory to Lender, to be held as Collateral pursuant to this
Agreement.

 

(d)              
[Reserved]

 

(e)               
Pledgor shall pay, and save Lender harmless from, any and all liabilities with respect to, or resulting from any delay in
paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of
the Collateral or in connection with any of the transactions contemplated by this Agreement.

 

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(f)               
Pledgor shall not, directly or indirectly, without the prior written consent of Lender, attempt to waive, alter, amend,
modify, supplement or change in any way, or release, subordinate, terminate or cancel in whole or in part, or give any consent
under, any of the instruments, documents, policies or agreements constituting the Collateral or any of the rights or interests
of Pledgor as party, holder, mortgagee or beneficiary thereunder. Pledgor agrees that all rights to do any and all of the foregoing
have been collaterally assigned to Lender, but Pledgor agrees that, upon request from Lender from time to time, Pledgor shall do
any of the foregoing or shall join Lender in doing so or shall confirm the right of Lender to do so and shall execute such instruments
and undertake such actions as Lender may reasonably request in connection therewith.

 

(g)              
Without the prior written consent of Lender, Pledgor shall not make any election, compromise, adjustment or settlement in
respect of any of the Collateral.

 

(h)              
Lender may, in its discretion, for the account and expense of Pledgor, pay any amount or do any act required of Pledgor
hereunder or requested by Lender to preserve, protect, maintain or enforce the obligations of Pledgor under this Agreement, the
Guaranty, the Collateral or the security interests granted herein, provided Pledgor has failed to pay such amount or take such
action within ten (10) business days after written demand by Lender. Any such payment shall be deemed an advance by Lender to Pledgor
and shall be payable by Pledgor within ten (10) business days after written demand.

 

(i)                
Each Pledgor shall promptly give to Lender notice of all pending material legal or arbitration proceedings in respect of
the Collateral, and of all proceedings pending by or before any governmental or regulatory authority or agency, affecting the Collateral
upon Pledgor’s knowledge thereof.

 

(j)                
Pledgor waives (i) all rights to require Lender to proceed against any other Person, entity or collateral or to exercise
any remedy set forth herein or in any other agreement, (ii) any right of subrogation or interest in the Guaranteed Obligations
or Collateral until the Guaranteed Obligations have been paid in full, (iii) any rights to notice of any kind or nature whatsoever,
unless specifically required in this Agreement or the Guaranty or is non-waivable under any applicable law, and (iv) to the extent
permissible, its rights under Section 9-207 of the Code. Pledgor agrees that the Collateral, other collateral or any other guarantor
or endorser may be released, substituted or added with respect to the Guaranteed Obligations, in whole or in part, without releasing
or otherwise affecting the liability of Pledgor, the pledge and security interests granted hereunder, or this Agreement. Lender
is entitled to all of the benefits of a secured party set forth in Section 9-207 of the Code.

 

5.                 
Certain Understandings of Parties; Registration of Pledge; Control of Collateral, Etc.

 

(a)               
The parties acknowledge and agree that the terms of the Pledged Company Interests do and will provide that they shall constitute
a “security” within the meaning of Article 8 of the Uniform Commercial Code (including §8-102(a)(15) thereof)
as in effect from time to time in the State of Delaware, Article 8 of the Code and Article 8 of the Uniform Commercial Code of
any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted
by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar
Association on February 14, 1995.

 

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(b)              
[Reserved]

 

6.                 
Cash Dividends; Voting Rights. If there are any regular membership interest cash distributions or cash dividends
including, without limitation, profits, losses, income, surplus, return on capital and equity interest distributions, paid in the
normal course of business of Borrower, such distributions and dividends shall be paid to Lender in accordance with the Loan Agreement.
Unless an Event of Default shall have occurred under the Guaranty and Pledgor shall have failed to pay the Guaranteed Obligations
as and when due under the Guaranty, Pledgor shall be permitted to exercise all voting and regular membership interests or rights
with respect to the Pledged Company Interests, provided that no vote shall be cast or right exercised or other action taken which,
in Lender’s reasonable judgment, would impair the Collateral or which would be inconsistent with or result in any violation
of any provision of the Loan Agreement, the Note, this Agreement or any other Loan Documents.

 

7.                 
Rights of Lender.

 

(a)               
If Pledgor shall fail to pay the Guaranteed Obligations under the Guaranty as and when due thereunder, Lender shall have
the right to receive any and all income, cash dividends, distributions, proceeds or other property received or paid in respect
of the Collateral and make application thereof to the Guaranteed Obligations, in such order as Lender, in its sole discretion,
may elect, in accordance with the Loan Documents. If Pledgor shall fail to pay the Guaranteed Obligations under the Guaranty as
and when due thereunder, then all Pledged Company Interests, at Lender’s option, shall be registered in the name of Lender
or its nominee (if not already so registered), and Lender or its nominee may thereafter exercise (i) all voting, and all regular
membership and other rights pertaining to the Pledged Company Interests, and (ii) any and all rights of conversion, exchange, and
subscription and any other rights, privileges or options pertaining to such Pledged Company Interests as if it were the absolute
owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Pledged Company Interests
upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the organizational structure of
Borrower, or upon the exercise by Pledgor or Lender of any right, privilege or option pertaining to such Pledged Company Interests,
and in connection therewith, the right to deposit and deliver any and all of the Pledged Company Interests with any committee,
depositary, transfer agent, registrar or other designated agency upon such terms and conditions as it may determine), all without
liability, subject to Section 10 below, except to account for property actually received by it, but Lender shall have
no duty to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing.
To further effect the provisions hereof, Pledgor hereby grants to Lender or its nominee, on behalf of Lender, an irrevocable proxy
to exercise upon the occurrence of an Event of Default all voting and membership rights relating to the Pledged Interests in any
instance. Pledgor has evidenced such proxy by execution and delivery of an Irrevocable Proxy Agreement in the form attached hereto
as Exhibit D. Upon the request of Lender, Pledgor agrees to deliver to Lender such further reasonable evidence of such
irrevocable proxy to vote the Pledged Interests as Lender may reasonably request.

 

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(b)              
The rights of Lender under this Agreement shall not be conditioned or contingent upon the pursuit by Lender of any right
or remedy against Pledgor or Borrower or against any other Person which may be or become liable in respect of all or any part of
the Guaranteed Obligations or against any other security therefor, guarantee thereof or right of offset with respect thereto. Lender
shall not be liable for any failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing
so, nor shall it be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgor or any other
Person or to take any other action whatsoever with regard to the Collateral or any part thereof.

 

(c)               
Upon the Termination Date, Lender’s rights under this Agreement shall terminate and Lender shall execute and deliver
to Pledgors UCC-3 termination statements or those documents and agreements reasonably requested by Pledgors to terminate all of
Lender’s rights under this Agreement and all other Loan Documents.

 

(d)              
Pledgor also authorizes Lender, at any time and from time to time, to execute, in connection with the sale provided for
in Sections 8 or 9 hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect
to the Collateral.

 

(e)               
The powers conferred on Lender hereunder are solely to protect Lender’s interest in the Collateral and shall not impose
any duty upon Lender to exercise any such powers. Lender shall be accountable only for amounts that it actually receives as a result
of the exercise of such powers, and neither it nor any of its officers, directors, employees or agents shall be responsible to
Pledgor for any act or failure to act hereunder, except for its or their gross negligence or willful misconduct.

 

(f)               
If Pledgor fails to perform or comply with any of its agreements contained herein which failure continues beyond any applicable
grace or cure period, if any, and Lender, as provided for by the terms of this Agreement, shall itself perform or comply, or otherwise
cause performance or compliance, with such agreement, the reasonable expenses of Lender incurred in connection with such performance
or compliance shall be payable by Pledgor to Lender within ten (10) days after written demand therefor and shall constitute obligations
secured hereby.

 

8.                 
Remedies. After the continuance beyond any applicable cure period of an Event of Default, Lender may exercise, in
addition to all other rights and remedies granted in this Agreement and in any other instrument or agreement securing, evidencing
or relating to the Guaranteed Obligations:

 

(a)               
all rights and remedies of a secured party under the Code (whether or not said Code is in effect in the jurisdiction where
the rights and remedies are asserted) and such additional rights and remedies to which a secured party is entitled under the laws
in effect in any jurisdiction where any rights and remedies hereunder may be asserted, including, without limitation, the right,
to the maximum extent permitted by law, to exercise all voting, consensual and other powers of ownership pertaining to the Collateral
as if Lender were the sole and absolute owner thereof (and Pledgor agrees to take all such action as may be appropriate to give
effect to such right);

 

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(b)              
Lender may make any reasonable compromise or settlement deemed desirable with respect to any of the Collateral and may extend
the time of payment, arrange for payment in installments, or otherwise modify the terms of, any of the Collateral;

 

(c)               
Lender in its discretion may, in its name or in the name of Pledgor or otherwise, demand, sue for, collect, direct payment
of or receive any money or property at any time payable or receivable on account of or in exchange for any of the Collateral, but
shall be under no obligation to do so.

 

After the occurrence
of an Event of Default, without limiting the generality of the foregoing, Lender may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, assign, give option or options to
purchase or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, in the over-the-counter market, at any exchange, broker’s board or office
of Lender or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best in its sole
discretion, for cash or on credit or for future delivery without assumption of any credit risk. Lender shall have the right, without
notice or publication, to adjourn any public or private sale or cause the same to be adjourned from time to time by announcement
at the time and place fixed for such sale, and any such sale may be made at any time or place to which the same may be adjourned
without further notice, except to Pledgor. Lender shall have the right upon any such public sale or sales, and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption of Pledgor, which right or equity of redemption is hereby waived and released to the extent permitted by law.
Lender shall apply any Proceeds from time to time held by it and the net proceeds of any such collection, recovery, receipt, appropriation,
realization or sale, after deducting all reasonable costs and expenses of every kind incurred therein or incidental to the care
or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of Lender hereunder, including,
without limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Guaranteed Obligations,
in such order as Lender may elect, and only after such application and after the payment by Lender of any other amount required
by any provision of law, including, without limitation, Sections 9-610 and 9-615 of the Code, need Lender account for the surplus,
if any, to Pledgor. To the extent permitted by applicable law, Pledgor waives all claims, damages and demands it may acquire against
Lender arising out of the exercise by Lender of any of its rights hereunder, except to the extent arising from gross negligence,
willful misconduct or bad faith of Lender. If any notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given in writing at least ten (10) business days before such sale
or other disposition.

 

(d)              
The rights, powers, privileges and remedies of Lender under this Agreement are cumulative and shall be in addition to all
rights, powers, privileges and remedies available to Lender at law or in equity. All such rights, powers and remedies shall be
cumulative and may be exercised successively or concurrently without impairing the rights of Lender hereunder.

 

    	11

    	 

    

 

9.                 
Private Sales. (a) Pledgor recognizes that Lender may be unable to effect a public sale of any or all of the Pledged
Company Interests, by reason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state
securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with
a view to the distribution or resale thereof. Pledgor acknowledges and agrees that any such private sale may result in prices and
other terms less favorable to Lender than if such sale were a public sale and, notwithstanding such circumstances, agrees that
any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of being a private
sale. Lender shall be under no obligation to delay a sale of any of the Pledged Company Interests for the period of time necessary
to permit Borrower or Pledgor to register such securities for public sale under the Securities Act of 1933, as amended, or under
applicable state securities laws, even if Borrower or Pledgor would agree to do so.

 

(b)              
Pledgor further shall use its commercially reasonable good faith efforts to do or cause to be done all such other acts as
may be reasonably necessary to make any sale or sales of all or any portion of the Pledged Company Interests pursuant to this Section
9 valid and binding and in compliance with any and all other requirements of applicable law. Pledgor further agrees that a
breach of any of the covenants contained in this Section 9 will cause irreparable injury to Lender, that Lender has no adequate
remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 9
shall be specifically enforceable against Pledgor, and Pledgor hereby waives and agrees not to assert any defenses against an action
for specific performance of such covenants.

 

(c)               
Lender shall not incur any liability as a result of the sale of any Collateral, or any part thereof, at any private sale
conducted in a commercially reasonable manner, it being agreed that some or all of the Collateral is or may be of one or more types
that threaten to decline speedily in value and that are not customarily sold in a recognized market.

 

(d)              
[Reserved]

 

(e)               
Pledgor agrees that Lender shall not have any general duty or obligation to make any effort to obtain or pay any particular
price for any Pledged Company Interests sold by Lender pursuant to this Agreement. Lender, may, in its sole discretion, among other
things, accept the first offer received, or decide to approach or not to approach any potential purchasers. Without in any way
limiting Lender’s right to conduct a foreclosure sale in any manner which is considered commercially reasonable, Pledgor
hereby agrees that any foreclosure sale conducted in accordance with the following provisions shall be considered a commercially
reasonable sale and hereby irrevocably waives any right to contest any such sale:

 

(i)                
Lender conducts the foreclosure sale in the State of Florida,

 

    	12

    	 

    

 

(ii)              
The foreclosure sale is conducted in accordance with the laws of the State of Florida,

 

(iii)            
Not less than ten (10) days in advance of the foreclosure sale, Lender notifies Pledgor in writing at the address set forth
herein of the time and place of such foreclosure sale,

 

(iv)            
The foreclosure sale is conducted by an auctioneer licensed in the State of Florida and is conducted in front of a Florida
State Court in the City of Miami, County of Miami-Dade, having jurisdiction over the Collateral on any business day between the
hours of 9:00 a.m. and 5:00 p.m.,

 

(v)              
The notice of the date, time and location of the foreclosure sale is published in the Miami Herald and the Wall Street Journal
(or such other daily newspaper widely circulated in Miami, Florida) for seven (7) consecutive days prior to the date of the foreclosure
sale, and

 

(vi)            
Lender sends notification of the foreclosure sale to all secured parties identified as a result of a search of the UCC financings
statements in the filing offices located in the State of Delaware conducted not later than twenty (20) days and not earlier than
thirty (30) days before such notification date.

 

10.             
Limitation on Duties Regarding Collateral. Lender’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession, under Section 9-207 of the Code or otherwise, shall be to deal with
it in the same manner as Lender deals with similar securities and property for its own account. Neither Lender nor any of its members,
directors, officers, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgor
or otherwise.

 

11.             
[Reserved]

 

12.             
Attorney-in-Fact. Without limiting any rights or powers granted by this Agreement to Lender, following the occurrence
and continuation of an Event of Default after the expiration of any applicable cure period, Lender is hereby appointed, which appointment
as attorney-in-fact is irrevocable and coupled with an interest, the attorney-in-fact of Pledgor for the purpose during the occurrence
and continuation of an Event of Default of carrying out the provisions of this Agreement and taking any action and executing any
instruments which Pledgor fails to do following not less than ten (10) business days written notice by Lender, and which Lender
may deem reasonably necessary or advisable to accomplish the purposes hereof including, without limitation:

 

(a)               
to file any claims or take any action or institute any proceedings that Lender may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of Lender, with respect to any of the Collateral; and

 

    	13

    	 

    

 

(b)              
to execute, in connection with the sale provided for in Sections 8 or 9, any endorsement, assignments, or
other instruments of conveyance or transfer with respect to the Collateral.

 

If so reasonably requested
by Lender, Pledgor shall ratify and confirm any such sale or transfer by executing and delivering to Lender at Pledgor’s
expense all proper deeds, bills of sale, instruments of assignment, conveyance of transfer and releases as may be designated in
any such request. The power-of-attorney granted pursuant to this Section 12 shall terminate upon the Termination Date.

 

13.             
[Reserved]

 

14.             
[Reserved]

 

15.             
Miscellaneous.

 

(a)               
Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

(b)              
Headings. The headings used in this Agreement are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

 

(c)               
No Waiver; Cumulative Remedies. Lender shall not by any act (except by written instrument pursuant to Section 15(d)
hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising,
on the part of Lender, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise
of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which Lender would otherwise have on any future occasion. The rights, remedies, powers and privileges herein
provided are cumulative, may be exercised singly or concurrently and are not exclusive of any rights, remedies, powers or privileges
provided by law.

 

(d)              
Waivers and Amendments; Successors and Assigns. None of the terms or provisions of this Agreement may be waived,
amended, or otherwise modified except by a written instrument executed by all parties to this Agreement. This Agreement shall be
binding upon Pledgor and its legal representatives, successors and permitted assigns and shall inure to the benefit of Lender and
its successors and assigns; provided no Pledgor shall have any right to assign its rights hereunder except to the extent provided
in the Loan Agreement. The rights of Lender under this Agreement shall automatically be transferred to any permitted transferee
to which Lender transfers the Note and Loan Agreement.

 

    	14

    	 

    

 

(e)               
Notices. Notices by Lender to Pledgor or Borrower to be effective shall be in writing, , and shall be deemed to have
been duly given if made in accordance with the terms and provisions of Section 11.6 of the Loan Agreement, and shall be
addressed to the parties as follows:

 

	If to Lender:	Net Element International Inc.
	 	1450 S. Miami Avenue
	 	Miami, Florida 33130
	 	Attn:	Jonathan New
	 	Fax:	305-507-8808
	 	Email: 	jn@netelement.com
	 	 	 
	with a copy to:	Bilzin Sumberg Baena Price & Axelrod LLP
	 	1450 Brickell Avenue
	 	Suite 2300
	 	Miami, FL 33131
	 	Attn:	Serge Pavluk, Esq.
	 	Fax:	(305) 351-2253
	 	Email:	spavluk@bilzin.com
	 	 	 
	If to Pledgors:	Oleg Firer
	 	c/o Unified Payments, LLC
	 	3363 NE 163rd Street
	 	Suite 705
	 	North Miami Beach, Florida 33160
	 	Fax:	786-272-0696
	 	Email:	ofirer@unifiedpayments.com
	 	 	 
	 	Georgia Notes 18 LLC
	 	c/o Unified Payments, LLC
	 	3363 NE 163rd Street
	 	Suite 705
	 	North Miami Beach, Florida 33160
	 	Fax:	786-272-0696
	 	Email:	ofirer@unifiedpayments.com
	 	 	 
	with a copy to:	Unified Payments, LLC
	 	3363 NE 163rd Street
	 	Suite 705
	 	North Miami Beach, Florida 33160
	 	Attn:	Steven Wolberg, Esq.
	 	Fax:	617-663-6269
	 	Email:	swolberg@unifiedpayments.com

  

    	15

    	 

    

 

(f)               
Governing Law.

 

(i)THIS AGREEMENT
WAS NEGOTIATED IN THE STATE OF FLORIDA, AND MADE BY PLEDGOR AND ACCEPTED BY LENDER IN THE STATE OF FLORIDA, AND THE PROCEEDS OF
THE NOTE SECURED HEREBY WERE DISBURSED FROM THE STATE OF FLORIDA, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP
TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE GUARANTEED OBLIGATIONS ARISING HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF FLORIDA. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF LENDER AND PLEDGOR HEREBY UNCONDITIONALLY AND IRREVOCABLY
WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA.

 

(ii)ANY LEGAL
SUIT, ACTION OR PROCEEDING AGAINST LENDER OR PLEDGOR ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER’S OR PLEDGOR’S
OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF MIAMI, COUNTY OF MIAMI-DADE, AND EACH OF LENDER AND PLEDGOR WAIVES
ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING,
AND EACH OF LENDER AND PLEDGORS HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.
PLEDGOR DOES HEREBY DESIGNATE AND APPOINT: 

 

STEVEN WOLBERG, ESQ.

C/O UNIFIED PAYMENTS

3363 NE 163RD STREET,
SUITE 705

NORTH MIAMI BEACH,
FLORIDA 33160

 

AS THEIR AUTHORIZED
AGENT TO ACCEPT AND ACKNOWLEDGE ON THEIR BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN ANY FEDERAL OR STATE COURT IN MIAMI, FLORIDA, AND AGREE THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND
WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO PLEDGOR IN THE MANNER PROVIDED IN SECTION 11.6 OF THE LOAN AGREEMENT
SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON PLEDGOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE
OF FLORIDA. PLEDGOR (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT
ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN MIAMI, FLORIDA (WHICH SUBSTITUTE AGENT
AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE
IF ITS AUTHORIZED AGENT IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

 

    	16

    	 

    

 

(g)              
Agents. Lender may employ agents and attorneys-in-fact in connection herewith and shall not be responsible for their
actions except for the gross negligence or willful misconduct of any such agents or attorneys-in-fact selected by it in good faith.

 

(h)              
[Reserved]

 

(i)                
Counterparts. This Agreement may be executed in any number of counterparts and all the counterparts taken together
shall be deemed to constitute one and the same instrument.

 

(j)                
WAIVER OF JURY TRIAL, DAMAGES, JURISDICTION. PLEDGOR AND LENDER EACH HEREBY AGREES TO WAIVE ITS RIGHTS TO A JURY
TRIAL ON ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT,
OR ANY DEALINGS BETWEEN PLEDGOR AND LENDER. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. PLEDGOR AND LENDER EACH ACKNOWLEDGES
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO LENDER TO ENTER INTO A BUSINESS RELATIONSHIP WITH PLEDGOR. EACH OF LENDER AND PLEDGOR
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH WAIVER IS KNOWINGLY AND VOLUNTARILY
GIVEN FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED, EITHER ORALLY
OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, REPLACEMENTS, REAFFIRMATIONS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT, OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

WITH RESPECT TO
ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, EACH OF LENDER AND PLEDGOR SHALL AND HEREBY DOES SUBMIT TO THE NON-EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF FLORIDA AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE
OF FLORIDA (AND ANY APPELLATE COURTS TAKING APPEALS THEREFROM). PLEDGOR AND LENDER EACH HEREBY WAIVES AND AGREES NOT TO ASSERT,
AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, (A) THAT IT IS NOT SUBJECT TO SUCH
JURISDICTION OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN THOSE COURTS OR THAT THIS AGREEMENT
OR ANY OF THE OTHER LOAN DOCUMENTS MAY NOT BE ENFORCED IN OR BY THOSE COURTS OR THAT IT IS EXEMPT OR IMMUNE FROM EXECUTION, (B)
THAT THE ACTION, SUIT OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR (C) THAT THE VENUE OF THE ACTION, SUIT OR PROCEEDING
IS IMPROPER. IN THE EVENT ANY SUCH ACTION, SUIT, PROCEEDING OR LITIGATION IS COMMENCED, EACH OF LENDER AND PLEDGOR AGREES THAT
SERVICE OF PROCESS MAY BE MADE, AND PERSONAL JURISDICTION OVER EACH OF LENDER AND PLEDGOR OBTAINED, BY SERVICE OF A COPY OF THE
SUMMONS, COMPLAINT AND OTHER PLEADINGS REQUIRED TO COMMENCE SUCH LITIGATION UPON THE OTHER PARTY AT THE ADDRESS OF THE OTHER PARTY
SET FORTH IN THE INTRODUCTORY PARAGRAPH OF THIS AGREEMENT OR AT SUCH ADDRESS AS EACH PARTY SHALL DESIGNATE WITH RESPECT TO ITSELF
BY NOTICE GIVEN IN ACCORDANCE WITH SECTION 15(E).

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	17

    	 

    

 

IN WITNESS WHEREOF, the parties have
caused this Agreement to be executed as of the date set forth above.

 

	 	PLEDGORS:
	 	 
	 	OLEG FIRER, an individual
	 	 
	 	 
	 	By:	 /s/ Oleg Firer

 

 

	 	Georgia
Notes 18 LLC, a Florida limited liability company
	 	 
	 	 
	 	By:	/s/ Anzheliqua Zalkin
	 	Name: 	Anzheliqua Zalkin
	 	Title:	Managing Member

  

 

	 	LENDER:
	 	 
	 	NET ELEMENT INTERNATIONAL INC.,
	 	a Florida corporation
	 	 
	 	 
	 	By:	/s/ Dmitry Kozko
	 	Name:	Dmitry Kozko
	 	Title:	President

 

[Signature
Page - Pledge Agreement]

 

    	18

    	 

    

 

EXHIBIT A

 

CERTIFICATE
for LIMITED LIABILITY COMPANY INTERESTS IN

unified
payments, llc

 

THIS
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER THE SECURITIES laws OR BLUE SKY LAWS
OF ANY STATE. THE HOLDER OF THIS CERTIFICATE, BY ITS ACCEPTANCE HEREOF, REPRESENTS THAT IT IS ACQUIRING THIS SECURITY FOR INVESTMENT
AND NOT WITH A VIEW TO ANY SALE OR DISTRIBUTION HEREOF. ANY TRANSFER OF THIS CERTIFICATE OR ANY LIMITED LIABILITY COMPANY INTEREST
REPRESENTED HEREBY IS SUBJECT TO THE TERMS, CONDITIONS AND RESTRICTIONS OF THE LIMITED LIABILITY COMPANY AGREEMENT (AS DEFINED
BELOW).

 

	Certificate	Number % Percentage Interest

 

UNIFIED PAYMENTS, LLC,
a Delaware limited liability company (the “Company”), hereby certifies that [______________________________________]
(the “Holder”) is the registered owner of ____% percent of the limited liability company interests in the Company.
The rights, powers, preferences, restrictions and limitations of such limited liability company interests in the Company are set
forth in, and this Certificate and the limited liability company interests in the Company represented hereby are issued and shall
in all respects be subject to the terms and provisions of, the Amended and Restated Operating Agreement of the Company dated December
21, 2012, as the same may be further amended or restated from time to time (the “Limited Liability Company Agreement”).
By acceptance of this Certificate, and as a condition to being entitled to any rights and/or benefits with respect to the limited
liability company interests evidenced hereby, the Holder is deemed to have agreed to comply with and be bound by all the terms
and conditions of the Limited Liability Company Agreement. The Company will furnish a copy of the Limited Liability Company Agreement
to the Holder without charge upon written request to the Company at its principal place of business. Transfer of any or all of
the limited liability company interests in the Company evidenced by this Certificate is subject to certain restrictions in the
Limited Liability Company Agreement and can be effected only after compliance with all of those restrictions and the presentation
to the Company of this Certificate, accompanied by an assignment in the form appearing on the reverse side of this Certificate,
duly completed and executed by and on behalf of the transferor in such Transfer, and an application for transfer in the form appearing
on the reverse side of this Certificate, duly completed and executed by and on behalf of the transferee in such Transfer.

 

Each limited liability
company interest in the Company shall constitute a “security” within the meaning of, and governed by Article 8 of the
Uniform Commercial Code (including Section 8-102(a)(15) thereof) as in effect from time to time in the States of Delaware and Florida.

 

    	Exhibit A-1

    	 

    

 

This Certificate and
the limited liability company interests evidenced hereby shall be governed by and construed in accordance with the laws of the
State of Delaware without regard to principles of conflicts of laws.

 

IN WITNESS WHEREOF, the
Company has caused this Certificate to be executed as of the date set forth below.

 

	Dated: ___________, ____	 	By:	 
	 	 	Name:	  
	 	 	Title:	  

 

    	Exhibit A-2

    	 

    

 

(REVERSE
SIDE OF CERTIFICATE)

 

ASSIGNMENT OF INTEREST

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto _________________________________________ (print or typewrite name of
transferee), __________________ (insert Social Security or other taxpayer identification number of transferee), the following specified
percentage of limited liability company interests in the Company: ______________ (identify the percentage interest being transferred)
effective as of the date specified in the Application for Transfer of Interests below, and irrevocably constitutes and appoints
__________________________ and its authorized officers, as attorney-in-fact, to transfer the same on the books and records of the
Company, with full power of substitution in the premises.

 

	Dated:	 	 	Signature:	 
	 	 	(Transferor)
	 	 	Address:	 

  

APPLICATION FOR TRANSFER OF INTERESTS

 

The undersigned applicant
(the “Applicant”) hereby (a) applies for a transfer of the percentage of limited liability company interests in the
Company described above (the “Transfer”) and applies to be admitted to the Company as a substitute member of the Company,
(b) agrees to comply with and be bound by all of the terms and provisions of the Limited Liability Company Agreement, (c) represents
that the Transfer complies with the terms and conditions of the Limited Liability Company Agreement, (d) represents that the Transfer
does not violate any applicable laws and regulations, and (e) agrees to execute and acknowledge such instruments (including, without
limitation, a counterpart of the Limited Liability Company Agreement), in form and substance satisfactory to the Company, as the
Company reasonably deems necessary or desirable to effect the Applicant’s admission to the Company as a substitute member
of the Company and to confirm the agreement of the Applicant to be bound by all the terms and provisions of the Limited Liability
Company Agreement with respect to the limited liability company interests in the Company described above. Initially capitalized
terms used herein and not otherwise defined herein are used as defined in the Limited Liability Company Agreement.

 

The Applicant directs that the foregoing
Transfer and the Applicant’s admission to the Company as a Substitute Member shall be effective as of ______________________________.

 

Name of Transferee (Print)

________________________________________

 

	Dated:	 	 	Signature:	 
	 	 	(Transferee)
	 	 	Address:	 

 

    	Exhibit A-3

    	 

    

 

The Company has determined (a) that the
Transfer described above is permitted by the Limited Liability Company Agreement, (b) hereby agrees to effect such Transfer and
the admission of the Applicant as a substitute member of the Company effective as of the date and time directed above, and (c)
agrees to record, as promptly as possible, in the books and records of the Company the admission of the Applicant as a substitute
member.

 

	 	
	 	 
	 	 
	 	By: 	
	 	 	Name:
 Title:

 

    	Exhibit A-4

    	 

    

 

EXHIBIT B

 

FORM OF
ASSIGNMENT OF MEMBERSHIP INTEREST

 

THIS ASSIGNMENT OF
MEMBERSHIP INTEREST (this “Assignment”) dated as of ___________________, ____, made by OLEG
FIRER, an individual having an address at ______________ and Georgia Notes
18 LLC, a Florida limited liability company, having an address at _______________ (together with their successors and
assigns, the “Assignors”) to ______________________ (the “Assignee”).

 

RECITALS

 

The Assignors have
entered into that certain Pledge Agreement, dated as of March 8, 2013, in favor of Net Element International Inc., a Florida corporation
(such Agreement, as it may be amended or otherwise modified from time to time, the “Pledge Agreement”).
Unless otherwise noted, terms defined in the Pledge Agreement are used herein as defined therein.

 

The Assignors are the
sole shareholders of Unified Payments LLC, a Delaware limited liability company (the “Company”) existing
under and evidenced by that certain Amended and Restated Limited Liability Company Agreement, dated as of December 21, 2012, as
the same may be amended, modified, supplemented, replaced or otherwise modified from time to time in accordance with the terms
of the Loan Agreement (such agreement, as it may be amended, supplemented or otherwise modified from time to time, the "Operating
Agreement”). Under the Operating Agreement, the Assignors have certain rights, title and interest in and to the Company
and the property and assets of the Company (collectively, the “Interest”). The Interest represents one hundred
percent (100%) of the ownership interests in the Company.

 

Lender has required
that the Assignors shall have executed and delivered this Assignment.

 

NOW THEREFORE, in consideration
of the premises and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

 

Section 1.               
Assignment and Acceptance of Assigned Interest. As of the Effective Date (as defined in Section 8 herein),
the Assignors hereby sell, transfer, convey and assign (without recourse and, except as set forth herein, representation or warranty)
(collectively, the “Assignment”) to the Assignee all of the Assignors' right, title and interest in and to
the Interest and of their rights under the Operating Agreement, including, without limitation, all of their (a) rights to
receive moneys due and to become due under or pursuant to the Operating Agreement, (b) rights to receive proceeds of any
insurance, indemnity, warranty or guaranty with respect to the Operating Agreement, (c) claims for damages arising out of
or for breach of or default under the Operating Agreement, and (d) rights to perform thereunder and to compel performance,
and otherwise exercise all rights and remedies thereunder. The percentage interest of the Assignors' right, title and interest
in the Interest and of the Assignors' rights under the Operating Agreement that are being assigned to the Assignee pursuant to
this Agreement are hereinafter referred to as the “Assigned Interest”.

 

    	Exhibit B-1

    	 

    

 

Section 2.               
Capital Account. On the Effective Date, the portion of all profits and losses, and all other items of income, gain,
loss, deduction or credit, allocable to the Assigned Interest shall be credited or charged, as the case may be, to the Assignee
and the Assignee shall be entitled to the portion of all distributions, payments or other allocations payable in respect of the
Assigned Interest, regardless of the source of such distributions, payments or other allocations or the date on which they were
earned.

 

Section 3.               
Representations and Warranties of the Assignor. The Assignors represent to Lender, as of the date of this Assignment,
and to Lender and the Assignee as of the Effective Date, that:

 

(a)               
This Assignment has been duly executed and delivered by the Assignors and is a valid and binding obligation of the Assignors,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting rights of creditors
generally, and general principles of equity; and

 

(b)              
The Assignors are the sole owners of the Assigned Interest free and clear of any liens, except for the liens created by
the Pledge Agreement.

 

Section 4.               
Future Assurances. Each of the Assignors and the Assignee mutually agrees to cooperate at all times from and after
the date hereof with respect to any of the matters described herein, and to execute such further deeds, bills of sale, assignments,
releases, assumptions, notifications or other documents as may be reasonably requested for the purpose of giving effect to, evidencing
or giving notice of the assignment evidenced hereby.

 

Section 5.               
Successors and Assigns. This Assignment shall be binding upon, and shall inure to the benefit of, the parties hereto
and their respective heirs, legal representatives, successors and assigns.

 

Section 6.               
Modification and Waiver. No supplement, modification, waiver or termination of this Assignment or any provisions
hereof shall be binding unless executed in writing by all parties hereto and the original of such writing has been delivered to
Assignee.

 

Section 7.               
Counterparts. Any number of counterparts of this Assignment may be executed. Each counterpart will be deemed to
be an original instrument and all counterparts taken together will constitute one agreement. Delivery of an executed counterpart
of a signature page to this Assignment by telecopier shall be as effective as delivery of a manually executed counterpart of this
Assignment.

 

Section 8.               
Execution; Effective Date. This Assignment will be binding and effective and will result in the assignment of the
Assigned Interest on the date first written above (the “Effective Date”); provided, however, that the Effective
Date shall not occur prior to the occurrence of an Event of Default (as such term is defined in Section 2(c) of the Pledge Agreement).

 

Section 9.               
Governing Law. This Assignment will be governed by the laws of the State of Florida.

 

    	Exhibit B-2

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Assignment to be executed and delivered.

 

	 	ASSIGNORS:
	 	 
	 	OLEG FIRER, an individual
	 	 
	 	 
	 	By:	 
	 	 
	 	 
	 	Georgia Notes 18 LLC, a Florida limited liability company
	 	 
	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 
	 	ASSIGNEE:
	 	 
	 	 
	 	 
	 	By:  	 
	 	Name:  	 
	 	Title:  	 

 

    	Exhibit B-3

    	 

    

 

EXHIBIT C

 

[FORM OF BORROWER CONSENT AND ACKNOWLEDGMENT]

 

Unified Payments, LLC,
a Delaware limited liability company hereby acknowledges receipt of a copy of the Pledge Agreement and agrees that it is bound
thereby.

 

Dated as of March 8, 2013

 

	 	UNIFIED PAYMENTS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: 	 
	 	 	Name:
	 	 	Title:

  

    	Exhibit C-1

    	 

    

  

EXHIBIT D

 

[FORM OF IRREVOCABLE PROXY AGREEMENT]

 

This IRREVOCABLE PROXY
AGREEMENT (this “Agreement”) is made as of March 8, 2013, by and among OLEG FIRER and Georgia
Notes 18 LLC, a Florida limited liability company (“Pledgors"), UNIFIED PAYMENTS, LLC, a Delaware limited liability
company (the “Company”), and NET ELEMENT INTERNATIONAL INC. (“Pledgee”).

 

Pledgors are the
beneficial and record holder of 100% of the membership interests in Company (the “Pledged Interests”); and

 

Pledgors desire to
grant to Pledgee the proxy granted pursuant hereto; and

 

Pledgors and Pledgee
intend that the proxy granted pursuant hereto to be irrevocable until that certain __________________________________________ ($_______________)
loan made by Pledgee to Company, evidenced by a Promissory Note of even date hereof made by Company to the order of Pledgee is
irrevocably satisfied and that the powers and proxies granted pursuant to this Agreement are given to secure the obligations of
Pledgors under that certain Pledge Agreement, dated as of the date hereof, between Pledgors and Pledgee (the “Pledge Agreement”);

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants herein contained, and other consideration, the receipt and adequacy of which
is hereby acknowledged, the parties hereto agree as follows:

 

1. Irrevocable
Proxy. Pledgors hereby grant to Pledgee an irrevocable proxy to vote the pledged interests and other equity interests
pledged by Pledgors and to exercise all other rights, powers, privileges and remedies to which a holder of the pledged interests
or other equity interests would be entitled (including without limitation giving or withholding written consents of shareholders,
members or partners, as applicable, calling special meetings of shareholders, members or partners, as applicable, and voting at
such meetings), which proxy is coupled with an interest and shall be effective, automatically and without the necessity of any
action (including any transfer of any pledged interests on the record books of the issuer thereof) by any other person (including
the issuer of the pledged interests or any officer or agent thereof), upon the occurrence of an Event of Default (as defined in
the Pledge Agreement) and which proxy shall only terminate upon either (i) the payment in full of the Debt (as defined in the Pledge
Agreement) other than the surviving obligations (which, however, shall remain subject to the preferential payment provisions) or
(ii) the cure of such Event of Default.

 

THE PROXIES AND POWERS GRANTED BY PLEDGORS
PURSUANT TO THIS AGREEMENT ARE COUPLED WITH AN INTEREST AND ARE GIVEN TO SECURE THE PERFORMANCE OF THE PLEDGORS' OBLIGATIONS UNDER
THE PLEDGE AGREEMENT AND UNDER THIS AGREEMENT.

 

    	Exhibit D-1

    	 

    

 

2. Agreements
of Company. Company shall give copies of any notices or other communications relating to the Pledged Interests (as
defined in the Pledge Agreement) that it sends to Pledgors or to any other members to Pledgee at the same time as such notices
or other communications are sent to Pledgors or any such other member of Company. Company acknowledges the powers and proxies granted
herein and agrees that Pledgee shall have the sole right following the occurrence of an Event of Default (as defined in the Pledge
Agreement) to vote the Pledgor’s Interests with respect to any matter.

 

3. Termination.
This Agreement shall terminate at such time as the Loan has been paid in full. The Company agrees that, during the term of this
Agreement, it will not remove, and will not permit to be removed (upon registration of transfer, reissuance or otherwise), the
legend from any such certificate and will place or cause to be placed the legend on any new certificate issued to represent the
membership interest theretofore represented by a certificate carrying a legend.

 

4. Miscellaneous

 

(a) Notices.
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, delivered by hand or by messenger or by a nationally recognized overnight courier, addressed:

 

	If to Pledgee:	Net Element International Inc.
	 	1450 S. Miami Avenue
	 	Miami, Florida 33130
	 	Attn:	Jonathan New
	 	Fax:  	305-507-8808
	 	Email: 	jn@netelement.com
	 	 	 
	with a copy to:	Bilzin Sumberg Baena Price & Axelrod LLP
	 	1450 Brickell Avenue
	 	Suite 2300
	 	Miami, FL 33131
	 	Attn:	Serge Pavluk, Esq.
	 	Fax:	(305) 351-2253
	 	Email:	spavluk@bilzin.com
	 	 	 
	If to Pledgors:	Oleg Firer
	 	c/o Unified Payments, LLC
	 	3363 NE 163rd Street
	 	Suite 705
	 	North Miami Beach, Florida 33160
	 	Fax:	786-272-0696
	 	Email:	ofirer@unifiedpayments.com
	 	 	 
	 	Georgia Notes 18 LLC
	 	c/o Unified Payments, LLC
	 	3363 NE 163rd Street
	 	Suite 705
	 	North Miami Beach, Florida 33160
	 	Fax:	786-272-0696
	 	Email:	ofirer@unifiedpayments.com

 

    	Exhibit D-2

    	 

    

 

	with a copy to:	Unified Payments, LLC
	 	3363 NE 163rd Street
	 	Suite 705
	 	North Miami Beach, Florida 33160
	 	Attn:	Steven Wolberg, Esq.
	 	Fax:	617-663-6269
	 	Email:	swolberg@unifiedpayments.com

  

(b) Governing
Law. This Agreement and all acts and transactions pursuant hereto shall be governed, construed and interpreted in accordance
with the laws of the State of Florida as they apply to contracts entered into and wholly to be performed within such state by residents
thereof

 

(c) Amendment.
Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument referencing this Agreement and signed by each of the parties to this Agreement.

 

(d) Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing
such counterparts, and all of which together shall constitute one instrument.

 

(e) Jurisdiction;
Venue. With respect to any disputes arising out of or related to this Agreement, the parties consent to the exclusive
jurisdiction of, and venue in, the state or federal courts located within the State of Florida.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Assignment to be executed and delivered.

	 	PLEDGORS:
	 	 
	 	OLEG FIRER
	 	 
	 	By:  	 

  

    	Exhibit D-3

    	 

    

 

	 	Georgia Notes 18 LLC, a Florida limited liability company
	 	 	 
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	COMPANY:
	 	 	 
	 	UNIFIED PAYMENTS, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	PLEDGEE:
	 	 	 
	 	NET ELEMENT INTERNATIONAL INC.,
	 	a Florida limited corporation
	 	 	 
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 

  

    	Exhibit D-4PROPELL TECHNOLOGIES GROUP INC.

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”), made effective as of March 6, 2013 (the “Effective Date”), by and between
PROPELL TECHNOLOGIES GROUP, INC., a corporation organized under the laws of the State of Delaware with offices located at 1701
Commerce Street, 2nd Floor, Houston, Texas 77002 (the “Company”), its subsidiaries, successors and assigns (collectively,
“Related Entities”) and JOHN WALTER HUEMOELLER II, an individual (the “Executive”).

 

RECITALS

 

A.               
The Company desires to employ Executive as its President and Chief Executive Officer and to have Executive serve on the
Board of Directors of the Company (the "Board") on the terms and conditions hereinafter set forth; and

 

B.                
Executive desires to be employed by the Company as its President and Chief Executive Officer and to serve on the Board and
to perform and to serve the Company on the terms and conditions hereinafter set forth.

 

AGREEMENTS

 

NOW,
THEREFORE, in consideration of the premises and of the mutual promises, agreements and covenants set forth herein, the parties
hereto agree as follows:

 

1.         Employment.

 

(a)Duties.
The Company hereby agrees to employ Executive, and Executive hereby accepts such employment, as the Chief Executive Officer and
President of the Company. In his role as Chief Executive Officer and President of the Company, Executive shall be responsible for
such duties and functions of a supervisory or managerial nature as may be directed from time to time by the Board provided that
such duties are reasonable and customary for a Chief Executive Officer. Executive agrees that he shall, during the term of this
Agreement, except during reasonable vacation periods, periods of illness and the like, devote such commercially necessary portion
of his business time, attention and ability to his duties and responsibilities hereunder; provided, however, that
nothing contained herein shall be construed to prohibit or restrict Executive from (i) serving in other various business capacities
or serving as a director or consultant of any corporation, except any business or corporation that is a “Competitor”
as defined in Section 7(a) below, with or without compensation therefor; (ii) serving in various capacities in community, civic,
religious or charitable organizations or trade associations or leagues; or (iii) attending to personal business; provided,
however, that no such service or activity permitted in this Section 1(a) shall materially interfere with the performance
by Executive of his duties hereunder.

 

    	 

    	 

    

 

(b)Term.

 

(i)
The term of this Agreement and Executive’s employment period shall be for a term commencing on the date of this Agreement
and ending on the third (3rd) anniversary of the Effective Date (the "Employment Period").

 

(ii)Notwithstanding
anything contained herein to the contrary, (A) Executive's employment with the Company may be terminated by the Company or Executive
during the Employment Period, subject to the terms and conditions of this Agreement; and (B) nothing in this Agreement shall mandate
or prohibit a continuation of Executive's employment following the expiration of the Employment Period upon such terms and conditions
as the Board and Executive may mutually agree.

 

(iii)If
Executive's employment with the Company is terminated, for purposes of this Agreement, the term "Unexpired Employment Period"
shall mean the period commencing on the date of such termination and ending on the last day of the Employment Period.

 

2.          Compensation.
Subject to the provisions of Section 8 hereof, the Company and its Related Entities shall each be responsible and have joint and
several liability for all compensation and benefits owed to Executive under this Agreement. .

 

(a)Salary.
Executive shall receive an annual base salary of One Hundred Eighty Thousand Dollars ($180,000) which shall be payable on a bi-weekly
basis. The annual base salary payable to Executive pursuant to this Section 2(a), which may be increased but not decreased by the
Board or the Compensation Committee of the Board, as the case may be, shall be hereinafter referred to as the "Annual Base
Salary."

 

(b)Annual
Bonus.

 

(i)The
Executive shall be eligible for an annual bonus of a percentage of his base salary payable in cash or equity. Any bonus that may
be awarded, if any, will be in the sole and absolute discretion of both the Compensation Committee, if any, and the Board of Directors
of the Company, the “Discretionary Annual Bonus”. The amount of such bonus shall depend on the achievement by
the Executive and/or the Company of certain objectives to be established by the Board or the Compensation Committee in consultation
with the Executive, along with such other factors the Board and Compensation Committee deems relevant. Any bonus for a given fiscal
year shall be payable upon the terms approved by the Board of Directors of the Company or the Compensation Committee, which shall
be obtained by the Company on or about December 31 of such year.

 

    	2

    	 

    

 

(c)Stock
Options. The Executive shall receive non-restricted options to purchase 10,000,000 shares of the Company’s common stock
at an exercise price of $.25 per share. The options will vest as follows: 2,500,012 options shall vest upon the Effective Date
and 208,333 options shall vest on each monthly anniversary of the Effective Date for thirty-six (36) successive months while Executive
is employed by the Company. All such vested options will remain exercisable for a period of five (5) years from the Effective Date.
Notwithstanding the foregoing vesting schedule, in the event of either a change of control (as defined in the next sentence), termination
of Executive by the Company without “Cause” as defined in Section 3(a)(i), or termination by Executive for “Good
Reason” as defined in Section 3(a)(iv), all shares subject to the option shall immediately vest and become exercisable. Change
of Control shall be defined as a sale of all or substantially all of the Company’s assets, or any merger or consolidation
of the Company with or into another corporation other than a merger or consolidation in which the holders of more than 50% of the
shares of capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by the voting
securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the
total voting power represented by the voting securities of the Company, or such surviving entity, outstanding immediately after
such transaction.

 

(d)Reimbursement
of Business Expenses. The Company shall promptly reimburse Executive for all reasonable out-of-pocket expenses incurred by
him pursuant to his employment hereunder during the Employment Period, including, but not limited to, all reasonable travel and
entertainment expenses. Executive may only obtain reimbursement under this Section 2(d) upon submission of such receipts and records
as may be initially required by the Board and, thereafter, as may be required under the reimbursement policies established by the
Company; provided, however, that any expense that exceeds $10,000 shall require pre-approval by the Board. Notwithstanding the
foregoing, Executive shall be permitted to charge reasonable expenses delineated in this Section 2(d) to Company charge cards or
other credit accounts made available to Executive by the Board.

 

(e)Additional Benefits; General Rights.
During the Employment Period, Executive shall be entitled to:

 

(i)participate
in all employee stock option, pension, savings, and other similar benefit plans of the Company as the Company may designate from
time to time;

 

(ii)participate
in all welfare plans established by the Company such as life insurance, medical, dental, disability, and business travel accident
plans and programs as the Company may designate from time to time;

 

(iii)four
(4) weeks paid vacation per year;

 

(iv)any
other benefits provided by the Company to its executive officers.

 

    	3

    	 

    

 

 

3.         Termination
of Employment; Events of Termination.

 

(a)This
Agreement may be terminated during the Employment Period under the following circumstances:

 

(i)Cause.
Executive's employment hereunder shall terminate for "Cause" thirty (30) days after the date the Company shall have given
Executive notice of the termination of his employment for "Cause", unless a cure period applies, in which case the termination
date may not precede the expiration date of the applicable cure period. For purposes of this Agreement, "Cause"
shall mean acts of embezzlement or misappropriation of funds or fraud; conviction of a felony or other crime involving moral turpitude;
a material violation by the Executive of any provision of this Agreement, including willful failure to perform assigned tasks,
or the willful and unauthorized disclosure of material confidential information belonging to the Company or entrusted to the Company
by a client.

 

(ii)Death.
Executive's employment hereunder shall terminate upon his death.

 

(iii)Disability.
Executive’s “Disability”, meaning Executive’s incapacity, due to physical or mental illness, which results
in Executive having been absent from fully performing his duties with the Company for a continuous period of more than thirty (30)
days or more than sixty (60) days in any period of three hundred sixty-five (365) consecutive days. In the event that the Company
intends to terminate the employment of Executive by reason of Disability, the Company shall give Executive no less than thirty
(30) days’ prior written notice of the Company’s intention to terminate Executive’s employment.  The
Executive agrees, in the event of any dispute hereunder as to whether a Disability exists, and if requested by the Company, to
submit to a physical examination in the state of the Company’s Executive offices by a licensed physician selected by mutual
agreement between the Company and the Executive, the cost of such examination to be paid by the Company. The written medical opinion
of such physician shall be conclusive and binding upon each of the parties hereto as to whether a Disability exists and the date
when such Disability arose. If Executive refuses to submit to appropriate examinations by such physician at the request of the
Company, the determination of the Executive’s Disability by the Company in good faith will be conclusive as to whether such
Disability exists. This Agreement shall be interpreted and applied so as to comply with the provisions of the Americans with Disabilities
Act (to the extent that it is applicable) and any other applicable laws regarding disability.

 

(iv)Good
Reason. Executive shall have the right to terminate his employment for "Good Reason." This Agreement shall
terminate effective immediately on the date Executive shall have given the Board notice of the termination of his employment with
the Company for "Good Reason." For purposes of this Agreement, "Good Reason" shall mean (A) any material and
substantial breach of this Agreement by the Company,(B) a Change in Control (as defined in Section 2(c) occurs and Executive’s
employment is terminated at any time within the six (6) month period on or immediately following the Change in Control (C) a reduction
in Executive's Annual Base Salary as in effect at the time in question, or any other failure by the Company to comply with Section
2, hereof, or (D) this Agreement is not assumed by a successor to the Company.

 

    	4

    	 

    

 

(v) Without
Cause. The Company shall have the right to terminate Executive's employment hereunder Without Cause subject to the terms and
conditions of this Agreement. In such event, this Agreement shall terminate, effective immediately upon the date on which the Company
shall have given Executive notice of the termination of his employment for reasons other than for Cause or due to Executive's Disability.

 

(vi)Without
Good Reason. Executive shall have the right to terminate his employment hereunder without Good Reason at any time for any reason
subject to the terms and conditions of this Agreement. This Agreement shall terminate, effective immediately upon the date as of
which Executive shall have given the Board notice of the termination of his employment without Good Reason.

 

(b)Notice of Termination.
Any termination of Executive's employment by the Company or any such termination by Executive (other than on account of death)
shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a "Notice
of Termination" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive's
employment under the provision so indicated. In the event of the termination of Executive's employment on account of death, written
Notice of Termination shall be deemed to have been provided on the date of death.

 

4.         Payments
Upon Termination.

 

(a)Without Cause,
For Good Reason or Disability. If Executive's employment is terminated by the Company without Cause or by Executive for Good
Reason, or by the Company due to Executive's Disability, Executive, or in the case of Executive's Disability, Executive's legal
representative (assuming Executive’s affairs are handled by a representative rather than Executive himself), shall be entitled
to receive from the Company a lump sum payment in an aggregate amount equal to the greater of (a) one (1) month base salary if
at the time of termination the Company has not achieved gross revenues of at least $1,000,000 or (b) six (6) months base salary
if at the time of termination the Company has achieved gross revenues of at least $1,000,000 (the "Severance Payment");
(ii) any bonuses which have been earned but not been paid prior to such termination ("Prior Bonus Payment") and
(iii) reimbursement of expenses incurred prior to date of termination (the "Expense Reimbursement"). The aforesaid
amounts shall be payable in cash without discount for early payment, monthly over the Unexpired Employment Period (the "Payment
Election").

 

    	5

    	 

    

 

In
the event Executive is terminated by the Company Without Cause or due to Executive's Disability or Executive terminates his employment
with the Company for Good Reason, Executive shall have no duty to mitigate the amount of the payment received pursuant to this
Section 4(a), it being understood that Executive's acceptance of other employment shall not reduce the Company’s or the other
Company' obligations hereunder.

(b)Death.
If Executive's employment is terminated due to death of Executive, Executive's estate or beneficiary(ies), as the case may be,
shall be entitled to a lump payment in an amount equal to the Severance Payment, the Prior Bonus Payment and Expense Reimbursement.

(c)Termination
With Cause or Without Good Reason. If the Company terminates Executive's employment for Cause or in the event Executive voluntarily
terminates his employment Without Good Reason, Executive shall be entitled to his Annual Base Salary through the date of the termination
of such employment and Executive shall be entitled to any bonuses which have been earned but not paid prior to such termination.
Executive shall not be entitled to any other bonuses. Executive's additional benefits specified in Section 2 shall terminate at
the time of such termination.

 

(d)Termination
by the Company Upon Change in Control. If the Company terminates Executive's employment for Good Reason in connection with
a Change in Control (as defined in Section 2(c)), Executive shall receive from the Company in one lump sum, payable on the consummation
of the Change in Control an amount equal to the Severance Payment, the Prior Bonus Payment and the Expense Reimbursement.

 

In
the event Executive is terminated by the Company in connection with a Change in Control which is not approved by the Continuing
Directors of the Company, Executive shall have no duty to mitigate the amount of the payment received pursuant to this Section
4(d), it being understood that Executive's acceptance of other employment shall not reduce the Company’s obligations hereunder.

 

5.         Confidential Information.

 

(a)      Executive
agrees that during the course of his employment or at any time thereafter, he will not disclose or make accessible to any other
person, the Company’s products, services and technology, both current and under development, promotion and marketing programs,
lists, trade secrets and other confidential and proprietary business information of the Company or any Related Entities or any
of their clients. Executive agrees: (i) not to use any such information for himself or others; and (ii) not to take any such material
or reproductions thereof from the Company’s facilities at any time during his employment by the Company other than to perform
his duties hereunder. Executive agrees immediately to return all such material and reproductions thereof in his possession to the
Company upon request and in any event upon termination of employment.

 

    	6

    	 

    

 

(b)     Except
with prior written authorization by the Company, Executive agrees not to disclose or publish any of the confidential, technical
or business information or material of the Company, its clients or any other party to whom the Company owes an obligation of confidence,
at any time during or after his employment with the Company.

 

(c)      In
the event that Executive breaches any provisions of this Section 5 or there is a threatened breach, then, in addition to any other
rights which the Company may have, the Company shall be entitled, without the posting of a bond or other security, to injunctive
relief to enforce the restrictions contained herein. In the event that an actual proceeding is brought in equity to enforce the
provisions of this Section 5, Executive shall not urge as a defense that there is an adequate remedy at law, nor shall the Company
be prevented from seeking any other remedies which may be available. In addition, Executive agrees that in the event that he breaches
the covenants in this Section 5, in addition to any other rights that the Company may have, Executive shall be required to pay
to the Company any amounts he receives in connection with such breach.

 

(d)      Executive
recognizes that in the course of his duties hereunder, he may receive from the Company or others information which may be considered
“material, non-public information” concerning a public company that is subject to the reporting requirements of the
United States Securities and Exchange Act of 1934, as amended. Executive agrees not to:

 

(i)      Buy
or sell any security, option, bond or warrant while in possession of relevant material, non-public information received from the
Company or others in connection herewith, and

 

(ii)       Provide the Company with information
with respect to any public company that may be considered material, non-public information, unless first specifically agreed to
in writing by the Company.

 

    	7

    	 

    

 

6.          Inventions Discovered by Executive.

 

(a)Executive
shall promptly disclose to the Company any invention, improvement, discovery, process, formula, or method or other intellectual
property, whether or not patentable or copyrightable (collectively, "Inventions"), conceived or first reduced
to practice by Executive, either alone or jointly with others, while performing services hereunder (or, if based on any Confidential
Information, within one (1) year after the Term), (a) which pertain to any line of business activity of the Company, whether then
conducted or then being actively planned by the Company, with which Executive was or is involved; (b) which is developed using
time, material or facilities of the Company, whether or not during working hours or on the Company premises; or (c) which directly
relates to any of Executive’s work during the Term, whether or not during normal working hours. Executive hereby assigns
to the Company all of Executive’s right, title and interest in and to any such Inventions. During and after the Term, Executive
shall execute any documents necessary to perfect the assignment of such Inventions to the Company and to enable the Company to
apply for, obtain and enforce patents, trademarks and copyrights in any and all countries on such Inventions, including, without
limitation, the execution of any instruments and the giving of evidence and testimony, without further compensation beyond Executive’s
agreed compensation during the course of Executive’s employment. All such acts shall be done without cost or expense to Executive.
Executive shall be compensated for the giving of evidence or testimony after the term of Executive’s employment at the rate
of $1,000/day. Without limiting the foregoing, Executive further acknowledges that all original works of authorship by Executive,
whether created alone or jointly with others, related to Executive’s employment with the Company and which are protectable
by copyright, are "works made for hire" within the meaning of the United States Copyright Act, 17 U.S.C. (S) 101, as
amended, and the copyright of which shall be owned solely, completely and exclusively by the Company. If any Invention is considered
to be work not included in the categories of work covered by the United States Copyright Act, 17 U. S. C. (S) 101, as amended,
such work is hereby assigned or transferred completely and exclusively to the Company. Executive hereby irrevocably designates
counsel to the Company as Executive's agent and attorney-in-fact to do all lawful acts necessary to apply for and obtain patents
and copyrights and to enforce the Company's rights under this Section. This Section 6 shall survive the termination of this Agreement.
Any assignment of copyright hereunder includes all rights of paternity, integrity, disclosure and withdrawal and any other rights
that may be known as or referred to as "moral rights" (collectively "Moral Rights"). To the extent such
Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries
where Moral Rights exist, Executive hereby waives such Moral Rights and consents to any action of the Company that would violate
such Moral Rights in the absence of such consent. Executive agrees to confirm any such waivers and consents from time to time as
requested by the Company.

 

7.          Non-Compete; Non-Solicitation.

 

(a)Non-Compete.  For
a period commencing on the Effective Date and ending one (1) year after the date Executive ceases to be employed by the Company
(the "Non-Competition Period"), Executive shall not, directly or indirectly, either for himself or any other person,
own, manage, control, materially participate in, invest in, permit his name to be used by, act as consultant or advisor to, render
material services for (alone or in association with any person, firm, corporation or other business organization) or otherwise
assist in any manner any business which develops, markets or sells products that are directly competitive with the products being
developed or sold by the Company at the time of termination (collectively, a "Competitor").  Nothing
herein shall prohibit Executive from being a passive owner of not more than five percent (5%) of the equity securities of a Competitor
which is publicly traded, so long as he has no active participation in the business of such Competitor.

 

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(b)Non-Solicitation.  During
the Non-Competition Period, Executive shall not, directly or indirectly (i) induce or attempt to induce or aid others in inducing
anyone working at or for the Company to cease working at or for the Company, or in any way interfere with the relationship between
the Company and anyone working at or for the Company except in the proper exercise of Executive’s authority; or (ii) in any
way interfere with the relationship between the Company and any customer, supplier, licensee or other business relation of the
Company.

 

(c)Scope.  If,
at the time of enforcement of this Section 8, a court shall hold that the duration, scope, area or other restrictions stated herein
are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, area or other restrictions
reasonable under such circumstances shall be substituted for the stated duration, scope, area or other restrictions.

 

(d)Independent
Agreement.  The covenants made in this Section 7 shall be construed as an agreement independent of any other provisions
of this Agreement, and shall survive the termination of this Agreement.  Moreover, the existence of any claim or cause
of action of Executive against the Company or any of its Related Entities, whether or not predicated upon the terms of this Agreement,
shall not constitute a defense to the enforcement of these covenants.

 

8.         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns. The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all its assets to expressly assume and agree to perform this Agreement in the same manner and to the same extent the Company would
be required to perform if no such succession had taken place. Executive agrees that this Agreement is personal to him and may not
be assigned by him other than by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by Executive's legal representative.

 

9.         Joint
and Several Liability.

 

(a)No
Duplication of Payments. The Company and its Related Entities shall be jointly and severally liable for any amounts payable
to Executive under this Agreement. Any amounts payable to Executive shall be paid in the first instance by the Company, and to
the extent not paid by the Company shall be paid by its Related Entities. In no event shall any amount payable pursuant to this
Agreement be paid by the Company and its Related Entities and Executive shall not be entitled to receive duplicate benefits or
payments under any of the provisions of this Agreement.

 

(b)New
Subsidiaries. Any subsidiary of the Company that is formed or acquired on or after the Effective Date shall be required to
become a signatory to this Agreement and shall become jointly and severally liable with the Company for the obligations hereunder.

 

(c)Sale
of Subsidiaries. Upon the sale of the stock or substantially all of the assets of any subsidiary of the Company, which is approved
by the Board, such subsidiary shall be automatically released from its obligations hereunder and shall not be considered as having
any continuing liability for the obligations hereunder, and Executive shall be released from his obligations to such subsidiary
hereunder.

 

    	9

    	 

    

 

10.         Governing
Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware
of the United States of America without regard to principles of conflict of laws. The State of Delaware shall be the exclusive
jurisdiction for any disputes arising under this Agreement and the Parties hereby consent to such jurisdiction.

 

11.         Entire
Agreement. This instrument contains the entire understanding and agreement among the parties relating to the subject matter
hereof, except as otherwise referred to herein, and supersedes all other prior agreements and undertakings, both written and oral,
among the parties with respect to the subject matter hereof. Neither this Agreement nor any provisions hereof may be waived or
modified, except by an agreement in writing signed by the party(ies) against whom enforcement of any waiver or modification is
sought.

 

12.         Severability.
In case any one or more of the provisions of this Agreement shall be invalid, illegal or unenforceable in any respect, or to any
extent, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected
or impaired thereby.

 

13.         Notices.
Any notice required or permitted to be given under the provisions of this Agreement shall be in writing and delivered by courier
or personal delivery, facsimile transmission (to be followed promptly by written confirmation mailed by certified mail as provided
below) or mailed by certified mail, return receipt requested, postage prepaid, addressed as follows:

 

		If to the Company:	1701 Commerce Street

Second Floor

Houston, TX 77002

 

		If to Executive:	Mr. John W. Huemoeller II

1701 Commerce Street

Second Floor

Houston, TX 77002

 

If
delivered personally, by courier or facsimile transmission (confirmed as aforesaid and provided written confirmation and receipt
is obtained by the sender), the date on which a notice is delivered or transmitted shall be the date on which such delivery is
made. Notices given by mail as aforesaid shall be effective and deemed received upon the date of actual receipt or upon the third
business day subsequent to deposit in the U.S. mail, whichever is earlier. Either party hereto may change its or his address specified
for notices herein by designating a new address by notice in accordance with this Section 12.

 

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14.         No
Undue Influence. This Agreement is executed voluntarily and without any duress or undue influence. Executive acknowledges that
he has read this Agreement and executed it with his full and free consent. No provision of this Agreement shall be construed against
any party by virtue of the fact that such party or its counsel drafted such provision or the entirety of this Agreement.

 

15.         Counterparts.
This Agreement may be executed in separate counterparts, each of which is deemed to be an original and both of which taken together
shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,
the Company and Executive have executed this Agreement as of the date first above written.

 

  

	EXECUTIVE:	COMPANY:
	 	 
	 	Propell Technologies Group Inc.
	 	a Delaware Corporation
	 	 
	 	 
	 	 
	   /s/ John W. Huemoeller II	By: /s/ Edward Bernstein        
	John W. Huemoeller II	Name: Edward Bernstein
	 	Title:   Chairman of the Board

 

 

 

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