Document:

Exhibit 10.2

 

AMENDMENT
No. 1

 

 

This Amendment No.1
is made and entered into this 30th day of June, 2014 (“Effective Date”) by and between Net Element, Inc.
(the “Company”), Oleg Firer, Steven Wolberg, Georgia Notes 18, LLC and Vladimir Sadovskiy.

 

Reference is made to
the Letter Agreement dated August 28, 2013 entered into between the Company, Oleg Firer, Steven Wolberg, Georgia Notes 18, LLC
and Vladimir Sadovskiy (the “Exchange Agreement”).

 

This Amendment No.1
amends the Exchange Agreement. Capitalized terms not defined in this Amendment No. 1 shall have the same meaning ascribed to them
in the Exchange Agreement.

 

Whereas:

 

Prior to the date of this Amendment No. 1, the parties intended
that the number of shares of common stock of the Company (the “Shares”) to be issued would be calculated to reflect
Shares that constituted a 10% ownership interest in the Company on a pre-share issuance basis;

 

The parties have agreed to revise the basis of the Share issuance
calculation and wish to record their agreement in writing;

 

Now therefore, the Parties agree as follows:

 

1. As and with effect from the Effective Date, the parties agree
that the number of Shares to be issued pursuant to the Exchange Agreement shall be calculated to reflect Shares that constitute
a 10% ownership interest in the Company on the post-share issuance basis.

 

2. Except as amended hereby, all other terms and provisions
of the Exchange Agreement remain in full and effect.

 

3. This Amendment No. 1 may be executed simultaneously in any
number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and
the same instrument. Delivery of an executed counterpart of a signature page of this letter agreement in Portable Document Format
(PDF) or by facsimile transmission shall be as effective as delivery of a manually executed original counterpart of this Amendment
No. 1.

 

 

[Signatures are on next page.]

 

    	 

    	 

    

 

Agreed to by the parties this June 30, 2014.

 

	 	NET ELEMENT, INC.
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	   	 
	 	Name:	Jonathan New
	 	Title:	Chief Financial Officer

 

 

 

 

________________________________________

Oleg
Firer

 

 

 

________________________________________

Steven
Wolberg

 

 

 

________________________________________

Vladimir
SadovskIy

 

 

 

Georgia Notes
18, LLC

 

 

	By:	 	 
	Name:	Anzheliqua Zalkin
	Title:	Managing MemberExhibit 4.5

 

Form of Warrant Agreement

 

THIS WARRANT AGREEMENT
(the “Agreement”), dated [_______], 2014, by and between Nxt-ID, a Delaware corporation (the “Company”)
and [___________], a [_______ corporation] (the “Warrant Agent”).

 

1. Definitions.
As used in this Agreement, the following terms shall have the respective definitions set forth in this Section 1. Capitalized terms
that are used and not defined in this Agreement that are defined in the Purchase Agreement (as defined below) shall have the respective
definitions set forth in the Purchase Agreement.

 

“Closing Price”
means, for any date of determination, the price determined by the first of the following clauses that applies: (i) if the Common
Stock is then listed or quoted on a Trading Market, the closing bid price per share of the Common Stock for such date (or the nearest
preceding date) on such market; (ii) if prices for the Common Stock are then quoted on the OTC Bulletin Board or OTC Quotation
Board, the closing bid price per share of the Common Stock for such date (or the nearest preceding date) so quoted; (iii) if prices
for the Common Stock are then reported in the “Pink Sheets” published by the National Quotation Bureau Incorporated
(or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the
Common Stock so reported; or (iv) in all other cases, the fair market value of a share of Common Stock as determined by an independent
qualified appraiser selected in good faith and paid for by the Company.

 

“Common Stock”
means the common stock of the Company, par value $0.001 per share, and any securities into which such common stock may hereafter
be reclassified.

 

“Exercise Price” means $[___],[1]
subject to adjustment in accordance with Section 10.

 

“Fundamental Transaction”
means any of the following: (i) the Company effects any merger or consolidation of the Company with or into another person, (ii)
the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender
offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock are permitted
to tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of
the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property.

 

“Purchase Agreement”
means the Underwriting Agreement, dated [___________], 2014, to which the Company and Northland Securities, Inc. are parties.

 

“Trading Day”
means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board or OTC Quotation Board),
or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board or OTC Quotation Board), a day
on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board or OTC Quotation Board,
or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter
market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in clauses (i), (ii)
and (iii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market”
means whichever of the New York Stock Exchange, NYSE AMEX, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market or the OTC Bulletin Board or OTC Quotation Board on which the Common Stock is listed or quoted for trading on the
date in question.

 

2. Form of
Warrant Certificate. Each Common Stock Purchase Warrant (the “Warrant”) will certify that for value received,
the holder or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after the date hereof (the “Original Issue Date”)
and on or prior to 5:30 p.m., New York City time, on the date that is five (5) years following the Original Issue Date (the “Expiration
Date”) but not thereafter, to subscribe for and purchase from the Company, up to [______] shares (as subject to adjustment
hereunder, the “Warrant Shares”) of Common Stock. The purchase price of $[___] per share of Common Stock under
the Warrant shall be equal to the Exercise Price, as defined in Section 1. The Company shall issue each Warrant in registered form
only, in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and shall be signed
by, or bear the facsimile signature of an authorized officer of the Company.

 

[1]
Note: To be 120% of the public offering price of the common stock in the public offering

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3. Registration
of Warrant. The Company shall register the Warrants upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of the Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

4. Registration
of Transfers. The Company shall register the transfer of any portion of the Warrant in the Warrant Register, upon surrender
of the Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified
herein. Upon any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of the Warrant
(any such new Warrant, a “New Warrant”), evidencing the portion of the Warrant so transferred shall be issued
to the transferee and a New Warrant evidencing the remaining portion of the Warrant not so transferred, if any, shall be issued
to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations of a holder of a Warrant.

 

5. Exercise and
Duration of Warrants.

 

(a)
The Warrant shall be exercisable by the registered Holder in whole at any time and in part from time to time from the Original
Issue Date through and including the Expiration Date. On the Expiration Date, the portion of the Warrant not exercised prior thereto
shall be and become void and of no value. The Company may not call or redeem any portion of the Warrant without the prior written
consent of the affected Holder. In no event will the
Company be required to net cash settle the Warrant exercise.

 

(b) Notwithstanding
anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of
the Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or
other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its affiliates (as defined
under Rule 144, “Affiliates”) and any other persons whose beneficial ownership of Common Stock would be aggregated
with the Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed 4.999% of the total number of issued
and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For
such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. This provision shall not restrict the number of shares of Common Stock which a Holder may receive
or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event
of a Fundamental Transaction as contemplated in Section 10 of this Agreement. By written notice to the Company, the Holder may
waive the provisions of this Section 5(b) but any such waiver will not be effective until the 61st day after delivery of such notice,
nor will any such waiver effect any other Holder.

 

Notwithstanding anything
to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of the Warrant
(or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance),
the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other persons whose
beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange
Act, does not exceed 9.999% of the total number of issued and outstanding shares of Common Stock (including for such purpose the
shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. This provision shall not restrict
the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities
or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 10 of
this Agreement. This restriction may not be waived.

 

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6. Delivery of Warrant
Shares.

 

(a) To effect
exercises hereunder, the Holder shall not be required to physically surrender the Warrant unless the aggregate Warrant Shares represented
by the Warrant are being exercised. Upon delivery of the Exercise Notice (in the form attached hereto) to the Warrant Agent (with
the attached Warrant Shares Exercise Log) at its address for notice set forth herein and upon payment of the Exercise Price multiplied
by the number of Warrant Shares that the Holder intends to purchase hereunder and the Warrant Agent shall promptly (but in no event
later than three Trading Days after the Date of Exercise (as defined herein)) issue and deliver to the Holder, a certificate for
the Warrant Shares issuable upon such exercise, which, unless otherwise required by the Purchase Agreement, shall be free of restrictive
legends. The Warrant Agent shall deliver Warrant Shares hereunder electronically through the Depository Trust Corporation or another
established clearing corporation performing similar functions, if available. A “Date of Exercise” means the
date on which the Holder shall have delivered to the Warrant Agent: (i) the Exercise Notice (with the Warrant Exercise Log attached
to it), appropriately completed and duly signed and (ii) if such Holder is not utilizing the cashless exercise provisions set forth
in this Agreement, payment of the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased.

 

(b) If by the
third Trading Day after the Company receives notice of the Warrant Agent receiving an Exercise Notice, the Company fails to cause
the Warrant Agent to deliver the required number of Warrant Shares in the manner required pursuant to Section 6(a), then the Holder
will have the right to rescind such exercise.

 

(c) If by the
third Trading Day after the Company receives notice of the Warrant Agent receiving an Exercise Notice, the Company fails to cause
the Warrant Agent to deliver the required number of Warrant Shares in the manner required pursuant to Section 6(a), and if after
such third Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated
receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by
which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the
Holder in connection with the exercise at issue by (B) the closing bid price of the Common Stock at the time of the obligation
giving rise to such purchase obligation and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock
that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall
provide the Warrant Agent written notice indicating the amounts payable to the Holder in respect of the Buy-In.

 

(d) The Company’s
obligations to cause the Warrant Agent to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and
unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to
any provision hereof, the recovery of any judgment against any person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other person of any obligation to the
Company or any violation or alleged violation of law by the Holder or any other person, and irrespective of any other circumstance
which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver certificates representing Warrant Shares upon exercise of the Warrant as required pursuant to the terms hereof.

 

(e) If the Warrant
is exercised in part, the Warrant Agent shall, at the request of a Holder and upon surrender of the Warrant, at the time of delivery
of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the
Holder to purchase the unpurchased Warrant Shares called for by the Warrant, which new Warrant shall in all other respects be identical
with the Warrant

 

7. Charges,
Taxes and Expenses. Issuance and delivery of Warrant Shares upon exercise of the Warrant shall be made without charge to the
Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates
for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability
that may arise as a result of holding or transferring the Warrant or receiving Warrant Shares upon exercise hereof. The Company
shall pay all Warrant Agent fees required for same-day processing of any Notice of Exercise.

 

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8. Replacement
of Warrant. If the Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and substitution for the Warrant, a New Warrant, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity
(which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply
with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe.
If a New Warrant is requested as a result of a mutilation of the Warrant, then the Holder shall deliver such mutilated Warrant
to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

9. Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of the Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 10). The Company covenants that all Warrant Shares so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable.

 

10. Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of the Warrant are subject to adjustment
from time to time as set forth in this Section 10.

 

(a) Stock
Dividends and Splits. If the Company, at any time while the Warrant is outstanding, (i) pays a stock dividend on its Common
Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a
smaller number of shares, then in each such case the Exercise Price shall be adjusted to equal the product obtained by multiplying
the then-current Exercise Price by a fraction of which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause
(ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(b) Fundamental
Transactions. If, at any time while the Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have
the right thereafter to receive, upon exercise of the Warrant, the same amount and kind of securities, cash or property as it would
have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental
Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of the Warrant (the “Alternate
Consideration”). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of the Warrant following such Fundamental
Transaction. At the Holder’s option and request, any successor to the Company or surviving entity in such Fundamental Transaction
shall, either (1) issue to the Holder a new warrant substantially in the form of the Warrant and consistent with the foregoing
provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon
exercise thereof, or (2) purchase the Warrant from the Holder for a purchase price, payable in cash within five Trading Days after
such request (or, if later, on the effective date of the Fundamental Transaction), equal to the Black Scholes value of the remaining
unexercised portion of the Warrant on the date of such request. The terms of any agreement pursuant to which a Fundamental Transaction
is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph
(b) and insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.

 

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(c) Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 10, the number of Warrant
Shares that may be purchased upon exercise of the Warrant shall be increased or decreased proportionately, so that after such adjustment
the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise
Price in effect immediately prior to such adjustment.

 

(d)
Calculations. All calculations under this Section 10 shall be made to the nearest cent or the nearest 1/100th
of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or
held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common
Stock.

 

(e) Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 10, the Company at its expense will promptly
compute such adjustment in accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment, including
a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise
of the Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon
which such adjustment is based. Upon written request, the Warrant Agent will promptly deliver a copy of each such certificate to
the Holder.

 

11. Payment
of Exercise Price. The Holder may pay the Exercise Price in one of the following manners:

 

(a) Cash
Exercise. The Holder may deliver immediately available funds; or

 

(b) Cashless
Exercise. If an Exercise Notice is delivered at a time when a registration statement permitting the Holder to resell the Warrant
Shares is not then effective or the prospectus forming a part thereof is not then available to the Holder for the resale of the
Warrant Shares, then the Holder may notify the Warrant Agent in an Exercise Notice of its election to utilize a cashless exercise,
in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

 

X = Y [(A-B)/A]

where:

X = the number
of Warrant Shares to be issued to the Holder.

Y = the number
of Warrant Shares with respect to which the Warrant is being exercised.

A = the average
of the Closing Prices for the five Trading Days immediately prior to (but not including) the Exercise Date.

B = the Exercise
Price.

 

For purposes of Rule 144 promulgated under
the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the date the Warrant was originally issued.

 

(c) Disposition
of Proceeds on Exercise of Warrants. The Warrant Agent shall promptly forward to the Company all monies received by the Warrant
Agent for the purchase of shares of Common Stock through the exercise of Warrants.

 

12. No Fractional
Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of any Warrant. In lieu of any
fractional shares which would, otherwise be issuable, the Company shall, at its election, either pay cash equal to the product
of such fraction multiplied by the Closing Price of one Warrant Share on the date of exercise or round up to the next whole share.

 

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13. Notices.
Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall
be in writing and shall be deemed given and effective if provided pursuant to the Purchase Agreement. In case any time: (1) the
Company shall declare any cash dividend on its capital stock; (2) the Company shall pay any dividend payable in stock upon its
capital stock or make any distribution to the holders of its capital stock; (3) the Company shall offer for subscription pro rata
to the holders of its capital stock any additional shares of stock of any class or other rights; (4) there shall be any capital
reorganization, or reclassification of the capital stock of the Company, or consolidation or merger of the Company with, or sale
of all or substantially all of its assets to, another corporation; or (5) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company; then, in any one or more of said cases, the Company shall give prompt written notice
to the Holder. Such notice shall also specify the date as of which the holders of capital stock of record shall participate in
such dividend, distribution or subscription rights, or shall be entitled to exchange their capital stock for securities or other
property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding
up, or conversion or redemption, as the case may be. Such written notice shall be given at least 20 days prior to the action in
question and not less than 20 days prior to the record date or the date on which the Company’s transfer books are closed
in respect thereto.

 

14. Warrant
Agent. The Company’s transfer agent for its Common Stock and Warrants, *[____________], shall serve as warrant agent
under the Warrant (the “Warrant Agent”). Upon thirty (30) days’ notice to the Holder, the Company may
appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting
from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or
any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor
warrant agent under the Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession
as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown
on the Warrant Register. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms of
this Agreement, the Warrant Shares required to be issued pursuant to the provisions of Section 6, and the Company, whenever required
by the Warrant Agent, will supply the Warrant Agent with certificates duly executed on behalf of the Company for such purpose.
The Warrant Agent shall be liable under this Agreement only for its own negligence, willful misconduct and bad faith. The Company
agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable
counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement except as a result of the Warrant
Agent’s negligence, willful misconduct or bad faith. The Warrant Agent shall have no responsibility with respect to the validity
of this Agreement or any Warrant (except its countersignature thereof), nor shall it be responsible for any breach by the Company
of any covenant or condition contained in this Agreement or in any Warrant. The Warrant Agent hereby accepts the agency established
by this Agreement and agrees to perform the same upon the terms and conditions herein set forth and among other things, shall account
promptly to the company with respect to the Warrants exercised and concurrently account for, and pay to the Company, all moneys
received by the Warrant Agent for the purchase of shares of the Company’s Common stock through the exercise of Warrants.
The Warrant Agent shall keep copies of this Agreement available for inspection by holders of Warrants during normal business hours.

 

15. Miscellaneous.

 

(a) Successors
and Assigns. This Agreement shall be binding on and inure to the benefit of the parties hereto and their respective successors
and assigns. Subject to the preceding sentence, nothing in this Agreement shall be construed to give to any Person other than the
Company and the Holder any legal or equitable right, remedy or cause of action under this Agreement.

 

(b) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of
conflicts of law thereof.

 

(c) Amendment.
The provisions of the Warrant and all warrants issued pursuant to the Purchase Agreement may be amended and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the Holders representing not less than a majority of the Warrant Shares obtainable upon exercise of the
Warrants then outstanding.

 

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(d) Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit
or affect any of the provisions hereof.

 

(e) Severability. In case any one or more of the provisions of this Agreement
shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this
Agreement shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid
and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

(f) No Rights
as Stockholder Until Exercise. Prior to exercise of the Warrant, the Holder hereof shall not, by reason of by being a Holder,
be entitled to any rights of a stockholder with respect to the Warrant Shares.

 

(g) Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of the
Warrant, pursuant to the terms hereof.

 

[signature page follows]

 

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In witness whereof, the
undersigned have caused this Agreement to be duly executed as of the date first indicated above.

	 	NXT-ID	 
	 	 	 	 
	 	By: 	 	 
	 	Name:	 	 
	 	Its:	 	 
	 	[NAME OF WARRANT AGENT]	 
	 	 	 	 
	 	By: 	 	 
	 	Name:	 	 
	 	Its:	 	 

 

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	Number	 	NXT-ID, INC.	 	Warrant
	 	 	 	 	 
	 	 	THIS WARRANT WILL BE VOID IF NOT EXERCISED PRIOR	 	 
	 	 	TO 5:30 P.M. NEW YORK CITY TIME, [_______], 2018	 	 
	 	 	 	 	 

 

THIS CERTIFIES THAT, for value received,
SPECIMEN

 

is the registered holder of a Warrant or Warrants
expiring [_______], 2018 (the “Warrant”) to purchase [___] of one fully paid and non-assessable share of common stock,
$0,0001 par value (“Shares”) of Nxt-ID, Inc., a Delaware corporation (the “Company”) for each Warrant evidenced
by this Warrant Certificate. The Warrant entitles the holder thereof to purchase from the Company, commencing upon the date of
issuance, such number of Shares of the Company at the price of $[___] per full Share (the “Exercise Price”), upon surrender
of the Warrant, with a duly executed facsimile copy of the Notice of Exercise Form attached hereto and payment of the Exercise
Price at the office or agency of the Warrant Agent, Corporate Stock Transfer, Inc. (the “Warrant Agent”), but subject
to the conditions set forth herein and in the Common Stock Purchase Warrant Agreement between the Company and the Warrant Agent
(the “Warrant Agreement”). The terms of the Warrant Agreement are incorporated herein in their entirety. In the event
of a conflict between this Warrant Certificate and the Warrant Agreement, the terms of the Warrant Agreement shall control.

 

This Warrant will expire on the date first
written above if it is not exercised prior to such date by the registered holder pursuant to the terms of the Warrant Agreement.

 

No fraction of a Share will be issued upon
any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction of a Share upon any exercise of a
Warrant, the Company shall, upon such exercise, round up to the nearest whole number the number of Shares to be issued to such
holder or pay a cash adjustment in respect of such fractional amount.

 

Warrant Certificates, when surrendered at the
office or agency of the Warrant Agent by the registered holder hereof in person or by attorney duly authorized in writing, may
be exchanged in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service
charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like number of Warrants.

 

Upon due presentment for registration of transfer
of the Warrant Certificate at the office or agency of the Warrant Agent in the manner provided in the Warrant Agreement, a new
Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued
to the transferee in exchange for this Warrant Certificate as provided in the Warrant Agreement.

 

The Company and the Warrant Agent may deem
and treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding any notation of ownership or
writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the registered holder, and for all
other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

This Warrant does not entitle the registered
holder to any of the rights of a stockholder of the Company.

 

	 	 	 	 	 	[____________________]
	 	 	 	 	By:	 
	President	 	Secretary	 	 	Transfer Agent and Registrar Authorized Officer

 

    	9

    	 

    

 

EXERCISE NOTICE

 

The undersigned Holder hereby irrevocably elects
to purchase shares of Common Stock pursuant to the attached Warrant. Capitalized terms used herein and not otherwise defined have
the respective meanings set forth in the Warrant.

 

(1) The undersigned Holder hereby exercises
its right to purchase Warrant Shares pursuant to the Warrant.

 

(2) The Holder intends that payment of the
Exercise Price shall be made as (check one):

 

 ̈
“Cash Exercise” under Section 10

 ̈
“Cashless Exercise” under Section 10

 

(3) If the holder has elected a Cash Exercise,
the holder shall pay the sum of $____________ to the Company in accordance with the terms of the Warrant.

 

(4) Pursuant to this Exercise Notice, the Company
shall deliver to the holder Warrant Shares in accordance with the terms of the Warrant.

 

	Dated ______________ __, _____ 	Name of Holder:	 
	 	 	 
	 	(Print)	 
	 	 	 
	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	Its:	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)	 

 

    	10

    	 

    

 

Warrant Shares Exercise Log

 

	Date	
        Number of Warrant

        Shares Available

        to be Exercised
	
        Number of Warrant

        Shares Exercised
	
        Number of Warrant

        Shares Remaining

        to be Exercised

	 	 	 	 

 

    	11

    	 

    

 

 

FORM OF ASSIGNMENT

 

[To be completed and signed
only upon transfer of Warrant]

 

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto the right represented by the attached Warrant to purchase shares of Common Stock to which such Warrant
relates and appoints attorney to transfer said right on the books of the Company with full power of substitution in the premises.

 

Dated: __________ __, _______

	 	 	 
	 	 	
        (Signature must conform in all respects to name of holder as specified
        on the face of the Warrant)

         

        Address of Transferee

	 	 	 
	 	 	 
	 	 	 
	 	 	Note: Address for Delivery may not be a P.O. box and must be a physical address where stock certificates may be delivered in connection with this purchase or any future stock issued through splits, warrant conversions or other circumstances. The delivery address may be a personal residence, or a broker dealer where the certificate would be deposited
	Attest:	 	 
	 	 	 

 

 

 

 

12

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