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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">WASHINGTON, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>FORM 8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center">Date of Report (Date of earliest event reported):</TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center">September 28, 2012</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid; font-size: 18pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 18pt">Net
    Element, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center">(Exact name of registrant as specified in its charter)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; font-size: 10pt; text-align: center">Delaware</TD>
    <TD STYLE="width: 12%; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 26%; border-bottom: windowtext 1pt solid; font-size: 10pt; text-align: center">000-51108</TD>
    <TD STYLE="width: 12%; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; font-size: 10pt; text-align: center">20-0715816</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or other jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">of incorporation)</P></TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(File Number)</P></TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(I.R.S. Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 63%; border-bottom: windowtext 1pt solid; text-align: center">1450 S. Miami Avenue, Miami, FL</TD>
    <TD STYLE="width: 12%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; text-align: center">33130</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; text-align: center">Registrant&rsquo;s telephone number, including area code:</TD>
    <TD STYLE="width: 49%; text-align: center">(305) 507-8808</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid; font-size: 10pt; text-align: center">Not Applicable</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center">Former name or former address, if changed since last report</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Wingdings">&uml;</FONT>
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Wingdings">&uml;</FONT>
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Wingdings">&uml;</FONT>
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Wingdings">&uml;</FONT>
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 1.02 Termination of a Material
Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In
connection with the closing of the Merger (as defined under Item 2.01 below), on September 28, 2012, Net Element, Inc. (the &ldquo;<U>Company</U>&rdquo;)
entered into a Termination of Shareholder Rights Agreement (the &ldquo;<U>Termination Agreement</U>&rdquo;) with TGR Capital, LLC,
MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation and Kenges Rakishev. Pursuant
to the Termination Agreement, that certain Shareholder Rights Agreement, dated as of February 24, 2012, among TGR Capital, LLC,
MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation, Kenges Rakishev and the
Company, was terminated</FONT> <FONT STYLE="font-size: 10pt">effective as of October 2, 2012 (immediately following the consummation
of the transactions contemplated pursuant to the Merger Agreement, as defined under Item 2.01 below). At the time the Termination
Agreement was entered into, each of Mike Zoi and Kenges Rakishev was a director and significant stockholder of the Company, and
each of Messrs. Zoi and Rakishev currently is a director and significant stockholder of NEI (as defined under Item 2.01 below).
Mr. Zoi is the direct or indirect controlling member and/or manager of each of TGR Capital, LLC, MZ Capital LLC (Delaware), MZ
Capital LLC (Florida) and Enerfund, LLC. Mr. Rakishev is the sole shareholder of Mark Global Corporation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 2.01 Completion of Acquisition
or Disposition of Assets.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As previously disclosed,
on June 12, 2012, the Company and Cazador Acquisition Corporation Ltd., a Cayman Islands limited corporation (&ldquo;<U>Cazador</U>&rdquo;),
entered into an Agreement and Plan of Merger (the &ldquo;<U>Merger Agreement</U>&rdquo;). On October 2, 2012, the parties closed
the transactions contemplated by the Merger Agreement and the Company merged (the &ldquo;<U>Merger</U>&rdquo;) with and into Cazador,
resulting in the Company ceasing to exist and Cazador continuing as the surviving company in the Merger. Immediately prior to consummation
of the Merger, Cazador re-domesticated and converted into a Delaware corporation. In connection with the Merger, Cazador changed
its name to Net Element International, Inc. (&ldquo;<U>NEI</U>&rdquo;). At the effective time of the Merger, each share of common
stock of the Company (&ldquo;<U>Company Shares</U>&rdquo;) issued and outstanding immediately prior to the effective time of the
Merger (other than Company Shares held by the Company as treasury stock or by any of its direct or indirect wholly-owned subsidiaries,
which were cancelled at the effect time of the Merger, and Company Shares with respect to which appraisal rights, to the extent
available under the Delaware General Corporation Law, were properly exercised and not withdrawn) was cancelled and converted into
the right to receive 1/40 (or 0.025) of a share of common stock of NEI. On October 3, 2012, NEI&rsquo;s common stock began trading
on The Nasdaq Capital Market under the trading symbol &ldquo;NETE.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 2, 2012,
the Company and Cazador issued a joint press release announcing the completion of the Merger, a copy of which is attached hereto
as Exhibit 99.1 and is incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">References to, and
descriptions of, the Merger Agreement as set forth herein are not intended to be complete and are qualified in their entirety by
reference to the Merger Agreement, a copy of which was filed by the Company as Exhibit 2.1 to its Form 8-K filed with the Securities
and Exchange Commission on June 14, 2012, and which is incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 3.03 Material Modification to Rights
of Security Holders.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The disclosures contained
under Item 2.01 relating to the effect of the Merger on issued and outstanding Company Shares are incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 5.02 Departure of Directors or
Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with
the Merger, each of Mike Zoi, Kenges Rakishev, Felix Vulis, Curtis Wolfe, James Caan and Dmitry Kozko resigned as a director of
the Company effective as of October 2, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 5.07 Submission of Matters to a
Vote of Security Holders.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 28, 2012,
the Company held a special meeting of its stockholders at which the Company&rsquo;s stockholders voted on the approval and adoption
of the Merger Agreement. The final voting results were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse; margin-left: 0.25in">
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 45%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; width: 1%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 11%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: justify">For</TD>
    <TD NOWRAP STYLE="vertical-align: top; width: 2%; padding-bottom: 1pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 11%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: justify">Against</TD>
    <TD NOWRAP STYLE="vertical-align: top; width: 2%; padding-bottom: 1pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 13%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: justify">Abstain/Withhold</TD>
    <TD NOWRAP STYLE="vertical-align: top; width: 2%; padding-bottom: 1pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 13%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: justify">Broker&nbsp;Non-Votes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Number of votes</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right">666,985,270</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">2,705</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">1,032</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Percentage of shares outstanding and entitled to vote</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">87.04</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">%&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">*</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">*</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">0</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;* Less than 1%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Stockholders of the
Company also voted on the adjournment of the special meeting, if necessary or appropriate, to solicit additional proxies if there
were not sufficient votes to approve and adopt the Merger Agreement (the &quot;<U>Adjournment Proposal</U>&quot;). There were 666,985,264
votes for the Adjournment Proposal, 2,725 votes against the Adjournment Proposal and 1,018 votes that abstained from voting on
the Adjournment Proposal and no broker non-votes as to the Adjournment Proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01 Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; font-weight: bold">Exhibit&nbsp;No.</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 78%; border-bottom: windowtext 1pt solid; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Termination of Shareholder Rights Agreement, dated as of September 28, 2012, among TGR Capital, LLC, MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation, Kenges Rakishev and Net Element, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press Release dated October 2, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NET ELEMENT INTERNATIONAL, INC.,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">a Delaware corporation, successor by merger to Net Element,
        Inc.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">Date: October 3, 2012</TD>
    <TD STYLE="width: 5%">By:</TD>
    <TD STYLE="width: 45%; border-bottom: Black 1pt solid">/s/ Jonathan New</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name:&nbsp;</TD>
    <TD STYLE="padding-left: 0.12in">&nbsp;Jonathan New</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD STYLE="padding-left: 0.12in">&nbsp;Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; font-weight: bold">Exhibit No.</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 81%; border-bottom: windowtext 1pt solid; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Termination of Shareholder Rights Agreement, dated as of September 28, 2012, among TGR Capital, LLC, MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation, Kenges Rakishev and Net Element, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press Release dated October 2, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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[{"type": "8-K", "sequence": "1", "filename": "v324992_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 27223}]
{"company-data": {"conformed-name": "Net Element, Inc.", "cik": "0001293330", "assigned-sic": "7374", "irs-number": "200715816", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51108", "film-number": "121126203"}, "business-address": {"street1": "1450 S. MIAMI AVE", "city": "MIAMI", "state": "FL", "zip": "33130", "phone": "305-507-8808"}, "mail-address": {"street1": "1450 S. MIAMI AVE", "city": "MIAMI", "state": "FL", "zip": "33130"}, "former-company": [{"former-conformed-name": "TOT Energy", "date-changed": "20080514"}, {"former-conformed-name": "Splinex Technology Inc.", "date-changed": "20040609"}]}
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 28, 2012
Net
    Element, Inc.
(Exact name of registrant as specified in its charter)
Delaware
000-51108
20-0715816
(State or other jurisdiction
of incorporation)
(Commission
(File Number)
(I.R.S. Employer
Identification No.)
1450 S. Miami Avenue, Miami, FL
33130
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(305) 507-8808
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.02 Termination of a Material
Definitive Agreement.
In
connection with the closing of the Merger (as defined under Item 2.01 below), on September 28, 2012, Net Element, Inc. (the "
Company
")
entered into a Termination of Shareholder Rights Agreement (the "
Termination Agreement
") with TGR Capital, LLC,
MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation and Kenges Rakishev. Pursuant
to the Termination Agreement, that certain Shareholder Rights Agreement, dated as of February 24, 2012, among TGR Capital, LLC,
MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation, Kenges Rakishev and the
Company, was terminated
effective as of October 2, 2012 (immediately following the consummation
of the transactions contemplated pursuant to the Merger Agreement, as defined under Item 2.01 below). At the time the Termination
Agreement was entered into, each of Mike Zoi and Kenges Rakishev was a director and significant stockholder of the Company, and
each of Messrs. Zoi and Rakishev currently is a director and significant stockholder of NEI (as defined under Item 2.01 below).
Mr. Zoi is the direct or indirect controlling member and/or manager of each of TGR Capital, LLC, MZ Capital LLC (Delaware), MZ
Capital LLC (Florida) and Enerfund, LLC. Mr. Rakishev is the sole shareholder of Mark Global Corporation.
Item 2.01 Completion of Acquisition
or Disposition of Assets.
As previously disclosed,
on June 12, 2012, the Company and Cazador Acquisition Corporation Ltd., a Cayman Islands limited corporation ("
Cazador
"),
entered into an Agreement and Plan of Merger (the "
Merger Agreement
"). On October 2, 2012, the parties closed
the transactions contemplated by the Merger Agreement and the Company merged (the "
Merger
") with and into Cazador,
resulting in the Company ceasing to exist and Cazador continuing as the surviving company in the Merger. Immediately prior to consummation
of the Merger, Cazador re-domesticated and converted into a Delaware corporation. In connection with the Merger, Cazador changed
its name to Net Element International, Inc. ("
NEI
"). At the effective time of the Merger, each share of common
stock of the Company ("
Company Shares
") issued and outstanding immediately prior to the effective time of the
Merger (other than Company Shares held by the Company as treasury stock or by any of its direct or indirect wholly-owned subsidiaries,
which were cancelled at the effect time of the Merger, and Company Shares with respect to which appraisal rights, to the extent
available under the Delaware General Corporation Law, were properly exercised and not withdrawn) was cancelled and converted into
the right to receive 1/40 (or 0.025) of a share of common stock of NEI. On October 3, 2012, NEI's common stock began trading
on The Nasdaq Capital Market under the trading symbol "NETE."
On October 2, 2012,
the Company and Cazador issued a joint press release announcing the completion of the Merger, a copy of which is attached hereto
as Exhibit 99.1 and is incorporated herein by this reference.
References to, and
descriptions of, the Merger Agreement as set forth herein are not intended to be complete and are qualified in their entirety by
reference to the Merger Agreement, a copy of which was filed by the Company as Exhibit 2.1 to its Form 8-K filed with the Securities
and Exchange Commission on June 14, 2012, and which is incorporated herein by this reference.
Item 3.03 Material Modification to Rights
of Security Holders.
The disclosures contained
under Item 2.01 relating to the effect of the Merger on issued and outstanding Company Shares are incorporated herein by this reference.
Item 5.02 Departure of Directors or
Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
In connection with
the Merger, each of Mike Zoi, Kenges Rakishev, Felix Vulis, Curtis Wolfe, James Caan and Dmitry Kozko resigned as a director of
the Company effective as of October 2, 2012.
2
Item 5.07 Submission of Matters to a
Vote of Security Holders.
On September 28, 2012,
the Company held a special meeting of its stockholders at which the Company's stockholders voted on the approval and adoption
of the Merger Agreement. The final voting results were as follows:
For
Against
Abstain/Withhold
Broker Non-Votes
Number of votes
666,985,270
2,705
1,032
0
Percentage of shares outstanding and entitled to vote
87.04
%
*
*
0
* Less than 1%.
Stockholders of the
Company also voted on the adjournment of the special meeting, if necessary or appropriate, to solicit additional proxies if there
were not sufficient votes to approve and adopt the Merger Agreement (the "
Adjournment Proposal
"). There were 666,985,264
votes for the Adjournment Proposal, 2,725 votes against the Adjournment Proposal and 1,018 votes that abstained from voting on
the Adjournment Proposal and no broker non-votes as to the Adjournment Proposal.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
10.1
Termination of Shareholder Rights Agreement, dated as of September 28, 2012, among TGR Capital, LLC, MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation, Kenges Rakishev and Net Element, Inc.
99.1
Press Release dated October 2, 2012
3
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
NET ELEMENT INTERNATIONAL, INC.,
a Delaware corporation, successor by merger to Net Element,
        Inc.
Date: October 3, 2012
By:
/s/ Jonathan New
Name:
Jonathan New
Title:
Chief Financial Officer
4
EXHIBIT INDEX
Exhibit No.
Description
10.1
Termination of Shareholder Rights Agreement, dated as of September 28, 2012, among TGR Capital, LLC, MZ Capital LLC (Delaware), MZ Capital LLC (Florida), Enerfund, LLC, Mike Zoi, Mark Global Corporation, Kenges Rakishev and Net Element, Inc.
99.1
Press Release dated October 2, 2012