Document:

Exhibit 10.4

 

STOCK PLEDGE AND SECURITY AGREEMENT

 

THIS STOCK
PLEDGE AND SECURITY AGREEMENT (“Agreement”) is made as of April 1, 2016, by and between EFACTOR GROUP CORP.,
a Nevada corporation, with headquarters located at 1177 Avenue of the Americas, Suite 5060, New York, New York 10036, (the “Pledgor”),
and MAGNA EQUITIES II, LLC, a New York corporation, (“Magna”) and INCREASIVE VENTURES B.V., a Netherlands
limited company (“IV” and together with “Magna” collectively, the “Purchasers” and individually,
each the “Purchaser”).

 

Recitals

 

The following recitals of fact are a material
part of this Agreement:

 

A.           Purchasers
and Pledgor are parties to that certain Securities Purchase Agreement of even date herewith (as the same may hereafter be modified,
amended, restated or supplemented from time to time, the “Securities Purchase Agreement”), pursuant to which, among
other things, Pledgor has agreed to issue and sell, and each Purchaser has agreed to purchase from Pledgor, a 12% Senior Secured
Convertible Secured Note (the “Note” and collectively the “Notes”) in the principal amount of $112,500
($225,000 for both Notes). Capitalized terms used in this Agreement without definition have the definitions given to them in the
Securities Purchase Agreement.

 

B.           To
induce Purchasers to enter into the Securities Purchase Agreement and to purchase the Notes as contemplated in the Securities Purchase
Agreement and to enter into that certain Forbearance Agreement of even date herewith (as the same may hereafter be modified, amended,
restated or supplemented from time to time, the “Forbearance Agreement”),, each Purchaser has required that Pledgor
execute and deliver this Agreement, pledging to the Purchaser the Pledged Stock (as defined below) in order to secure the prompt
and complete payment, observance and performance of all of the Obligations (as defined below).

 

AGREEMENT

 

NOW, THEREFORE, to
induce Purchasers to enter into the Securities Purchase Agreement and to purchase the Notes, and in recognition that Purchasers
would not enter into the Securities Purchase Agreement or purchase the Notes or enter into the Forbearance Agreement but for Pledgor’s
promises and agreements hereunder, and for other good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged by the parties, Pledgor and Purchasers agree as follows:

 

1.          Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement or the Notes shall have the
meanings given such terms in the Purchase Agreement or the Notes. As used in this Agreement, the following terms shall have the
following meanings:

 

    	1 

     

    

 

1.1           “Pledged
Stock” The term “Pledged Stock” means the shares of capital stock of the Subsidiaries set forth
in Schedule 3(a) to the Purchase Agreement and made a part hereof and as set forth on Schedule 1.1 hereto, together with all certificates,
options, rights and other distributions issued as an addition to, in substitution or exchange for, or on account of, any such Pledged
Stock, options, rights and warrants, all accounts, contract rights and general intangibles arising from any and all of the foregoing
or relating thereto, and all proceeds of all the foregoing, whether now or hereafter owned or acquired by Pledgor.

 

1.2           
“Pledged Collateral” means, collectively, the Pledged Stock and all products and proceeds thereof.

 

1.3           “Obligations”
means all obligations (including, but not limited to, all Liabilities) of Pledgor to the Purchasers now or hereafter existing under
the Notes, the other Transaction Documents, the notes set forth on Exhibit A hereto (the “Prior Notes”) and/or otherwise
all other obligations.

 

2.          Pledged
Collateral.

 

2.1           As
partial security for the payment, performance and satisfaction of the Obligations, Pledgor hereby grants, assigns and pledges to
the Purchasers a security interest in and to all of such Pledgor’s right, title and interest in and to the Pledged Stock
and the Pledge Collateral.

 

2.2           Contemporaneously
herewith, Pledgor shall register all existing Pledged Stock in the name of Purchasers as “Co-Pledgees” shall deliver
to the Escrow Agent pursuant to the Security Escrow Agreement dated on or about the date hereof by and among the Pledgor, the Purchasers
and the escrow agent named therein (the “Escrow Agent”) stock certificates representing the Pledged Stock (the “Certificates”),
and such other instruments, documents and agreements as may be reasonably requested by Purchaser to perfect the security interest
granted under this Agreement and to transfer the Pledged Securities to the Purchasers as provided elsewhere herein. Such Certificates
shall be delivered by the Pledgor to the Escrow Agent no later than five (5) business days after the date hereof (the “Delivery
Date”).

 

3.          Release
Upon Termination and Payment of All Indebtedness. Upon payment in full and the satisfaction of all of the Obligations, the
Purchaser shall release the security interest in the Pledged Collateral, return the Certificate to the Pledgor and file any necessary
termination statements with respect to all financing statements covering the Pledged Collateral, all at Pledgor’s expense.

 

4.          Representations
and Warranties. Pledgor represents and warrants that:

 

4.1           Organization,
Existence and Good Standing. Pledgor is a corporation duly organized and validly existing as a corporation in good standing
under the laws of the State of Nevada.

 

4.2           Power
and Authority; Authorization. Pledgor has all requisite power and authority to execute, deliver and perform this Agreement
and to consummate the transactions contemplated hereby. The execution, delivery and performance by Pledgor of this Agreement and
the consummation by Pledgor of the transactions contemplated hereby (a) have been authorized by all necessary corporate action
on the part of Pledgor and (b) do not violate Pledgor’s Articles of Incorporation or By-laws. This Agreement has been duly
executed and delivered by Pledgor. This Agreement constitutes, the legal, valid and binding obligation of Pledgor, enforceable
against it in accordance with its terms, except as such enforceability may be limited by applicable laws relating to bankruptcy,
insolvency, reorganization, moratorium or other similar legal requirement relating to or affecting creditors’ rights generally
and except as such enforceability is subject to general principles of equity (regardless of whether enforceability is considered
in a proceeding in equity or at Law).

 

    	2 

     

    

 

4.3           The
Pledged Stock. The Pledged Stock has been duly authorized and validly issued, and is fully-paid and non-assessable, free and
clear of any and all Liens.

 

4.4           Security
Interest. The security interest granted by Pledgor to the Purchaser in the Pledged Collateral constitutes a valid first priority
lien and security interest in the Pledged Collateral.

 

5.          Covenants.
Pledgor covenants that:

 

5.1           Notice
of Actions. Pledgor shall promptly give written notice to the Purchaser of the institution of any action involving any part
of the Pledged Collateral, or any of the transactions contemplated by this Agreement.

 

5.2           No
Transfer. Pledgor shall not directly and/or indirectly sell, assign or otherwise transfer its interest in or to the Pledged
Collateral under any circumstance.

 

5.3           No
Liens. The Company shall not and shall ensure no other Persons including, but not limited to, any of its Subsidiaries, takes
any direct and/or indirect actions resulting in a Lien(s) being placed on any of the Pledged Collateral other than to and for the
benefit of the Purchaser.

 

6.          Events
of Default; Rights and Remedies on Default.

 

6.1           Event
of Default. The occurrence of any one or more of the following shall constitute an “Event of Default” under the
terms of this Agreement:

 

(a)          Pledgor
shall fail or neglect to perform or observe any term, covenant, warranty or representation contained in this Agreement, or the
Transaction Documents that is required to be performed or observed by Pledgor and the same, if capable of being cured, is not cured
within 30 days after the giving of notice by the Purchaser to Pledgor of such failure;

 

(b)          Pledgor
shall fail to deliver the Certificates by the Delivery Date;

 

(c)          An
“Event of Default” as defined in the Notes shall occur.

 

6.2           Remedies.

 

(a)          If
an Event of Default shall have occurred and be continuing, the Purchasers, by unanimous written consent of both Purchasers, may
at their option:

 

(i)          without
presentment, demand, notice, protest or legal process of any kind, declare all of the Obligations immediately due and payable;

 

    	3 

     

    

 

(ii)         immediately
exercise all enforcement and other ownership rights pertaining to any or all of the Pledged Collateral as though Purchasers were
the outright owners of such Pledged Collateral;

 

(iii)        subject
to restrictions on transfer under applicable State and Federal securities laws, sell, assign and deliver the whole or, from time
to time, any part of the Pledged Collateral at any private sale or at public auction, in accordance with the Uniform Commercial
Code; and

 

(iv)        exercise
any other remedy specifically granted under this Agreement, the Notes, the Prior Notes and/or any other Transaction Document now
or hereafter existing in equity, at law, by virtue of statute, whether as a secured party in possession of collateral or otherwise.

 

(b)          The
Purchasers shall apply the proceeds of any sale of the whole or any part of the Pledged Collateral and any other monies at the
time held by such Purchasers under the provisions of this Agreement (the “Proceeds”), after deducting all reasonable
costs and expenses of collection, sale and delivery incurred by such Purchasers in connection with such sale, towards the payment
of the Obligations. Such Proceeds shall be applied and distributed; (1) to interest on the Prior Notes ratably in proportion to
the interest accrued thereon; (2) to principal of the Prior Notes ratably in proportion to the outstanding principal amounts thereof;
and (3) to all other Obligations of the Pledgor to the Purchasers ratably in proportion to the unpaid amount thereof.

 

(c)          After
full and final payment to the Purchasers in cash of all such Obligations, the Purchasers shall remit any surplus to Pledgor.

 

(d)          Unless
and until there occurs an Event of Default under this Agreement, Purchasers shall have no right to vote any of the Pledged Stock
and shall not be entitled to receive any distributions thereon.

 

6.3           Notice.
Any notice required to be given by the Purchaser or Pledgor may be given in any manner provided for delivery of notices in the
Purchase Agreement.

 

6.4           Costs.
Pledgor shall pay all out-of-pocket fees and expenses reasonably incurred by the Purchaser in connection with the enforcement of
such Purchaser’s rights hereunder.

 

7.          Power
of Attorney. Pledgor authorizes Purchasers and does hereby make, constitute and appoint such Purchasers, with full power of
substitution, as Pledgor’s true and lawful attorney-in-fact, with power, in its own name upon the occurrence and continuation
of an Event of Default: (a) to pay or discharge any taxes or other Liens at any time levied or placed on or threatened against
the Pledged Collateral; and (b) generally, to do, at Purchasers’ option and at Pledgor’s expense, all acts and things
that Purchasers deems reasonably necessary and with notice to Pledgor to protect, preserve and realize upon the Pledged Collateral
and Purchasers’ security interest therein in order to effect the intent of this Agreement and the other Transaction Documents.
This power of attorney is coupled with an interest and shall be irrevocable.

 

    	4 

     

    

  

8.          Miscellaneous.

 

8.1           Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and will
become effective when one or more counterparts have been signed by a party and delivered to the other parties. Copies of executed
counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed counterparts
for purposes of this Section 8.1, provided that receipt of copies of such counterparts is confirmed.

 

8.2           Successors
and Assigns. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors
and permitted assigns.

 

8.3           Headings.
The Section and other headings contained in this Agreement are inserted for convenience of reference only and will not affect the
meaning or interpretation of this Agreement.

 

8.4           Amendments
and Waivers. This Agreement may not be modified or amended except by an instrument or instruments in writing signed by each
party hereto. Any party hereto may, only by an instrument in writing, waive compliance by any other party or parties hereto with
any term or provision hereof on the part of such other party or parties hereto to be performed or complied with. No failure or
delay of any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor will any single or partial
exercise of any right or power, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other
or further exercise thereof or the exercise of any other right or power. The waiver by any party hereto of a breach of any term
or provision hereof shall not be construed as a waiver of any subsequent breach. The rights and remedies of the parties hereunder
are cumulative and are not exclusive of any rights or remedies that they would otherwise have hereunder.

 

8.5           Interpretation;
Absence of Presumption.

 

(a)          For
the purposes hereof: (i) words in the singular shall be held to include the plural and vice versa and words of one gender
shall be held to include the other gender as the context requires; (ii) the terms “hereof”, “herein”,
and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Section, paragraph, and Schedule references are to the Sections,
paragraphs, and Schedule in this Agreement unless otherwise specified; (iii) the word “including” and words of
similar import when used in this Agreement shall mean “including, without limitation”, unless the context otherwise
requires or unless otherwise specified; and (iv) the word “or” shall not be exclusive.

 

(b)          With
regard to each and every term and condition of this Agreement and each of the other Transaction Documents, the parties hereto understand
and agree that the same have or has been mutually negotiated, prepared and drafted, and if at any time the parties hereto desire
or are required to interpret or construe any such term or condition or any other Transaction Document, no consideration will be
given to the issue of which party hereto actually prepared, drafted or requested any term or condition of this Agreement or any
of the other Transaction Documents.

 

    	5 

     

    

 

8.6           Severability.
Any provision hereof that is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction,
shall be ineffective only to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining
provisions hereof, provided, however, that the parties will attempt in good faith to reform this Agreement in a manner
consistent with the intent of any such ineffective provision for the purpose of carrying out such intent.

 

8.7           Jurisdiction,
Etc. This Agreement and the terms and conditions set forth herein, shall be governed by and construed solely and exclusively
in accordance with the internal laws of the State of New York without regard to the conflicts of laws principles thereof. The parties
hereto hereby expressly and irrevocably agree that any suit or proceeding arising directly and/or indirectly pursuant to or under
this Agreement shall be brought solely in a federal or state court located in the City, County and State of New York. By its execution
hereof, the parties hereto covenant and irrevocably submit to the in personam jurisdiction of the federal and state courts located
in the City, County and State of New York and agree that any process in any such action may be served upon any of them personally,
or by certified mail or registered mail upon them or their agent, return receipt requested, with the same full force and effect
as if personally served upon them in New York, New York. The parties hereto expressly and irrevocably waive any claim that any
such jurisdiction is not a convenient forum for any such suit or proceeding and any defense or lack of in personam jurisdiction
with respect thereto. In the event of any such action or proceeding, the party prevailing therein shall be entitled to payment
from the other parties hereto of all of its reasonable counsel fees and disbursements.

 

8.8           Purchasers’
Actions. Notwithstanding anything to the contrary provided herein or elsewhere, the Purchasers may only act with respect to
this Agreement, the Pledged Securities and Pledge Collateral based upon unanimous written consents of both Purchasers.         

  

[Remainder of page intentionally left blank]

 

    	6 

     

    

 

IN WITNESS WHEREOF,
the parties have executed and delivered this Pledge Agreement as of the date first written above.

  

	EFACTOR GROUP CORP.	 
	 	 
	By:	/s/ Mark Noffke	 
	 	Name: Mark Noffke	 
	 	Title: Chief Financial Officer	 
	 	 	 
	MAGNA EQUITIES II, LLC	 
	 	 	 
	By:	/s/ Joshua Sason	 
	 	Name: Joshua Sason	 
	 	Title: Managing Member	 
	 	 	 
	INCREASIVE VENTURES B.V.	 
	 	 
	By:	/s/ Ad Prins	 
	 	Name: Ad Prins	 
	 	Title: Managing Director	 

 

     

     

    

 

Schedule 1.1

Pledged Stock

 

	Pledgor	 	Pledged Entity	 	Jurisdiction	 	Description 

of Pledged 

Shares	 	Certificate 

No.’s	 	% of 

Outstanding 

Interests	 
	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	The E-Factor Corporation	 	Delaware	 	Shares acquired as part of acquisition	 	  CS- 239	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	MCC International Limited	 	United Kingdom	 	Shares acquired as part of acquisition	 	 	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	RocketHub Inc.	 	New York	 	Shares acquired as part of acquisition	 	C-1	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	ELEQT Ltd	 	United Kingdom	 	Shares acquired as part of acquisition	 	 	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	HT Skills Ltd	 	United Kingdom	 	Shares acquired as part of acquisition	 	 	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	GroupCard BV	 	The Netherlands	 	Shares acquired as part of acquisition	 	 	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	Member Digital Ltd	 	United Kingdom	 	Shares acquired as part of acquisition	 	 	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	Sub Hub LLC	 	Florida	 	Shares acquired as part of acquisition	 	 	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EFactor Group Corp.	 	Robson Dowry Associates Ltd.	 	United Kingdom	 	Shares acquired as part of acquisition	 	 	 	 	100	%

 

  

     

     

    

  

EXHIBIT A

 

	Note	 	Issue Date	 	Principal Amount	 	 	Maturity Date
	Increasive Ventures BV	 	7/31/2015	 	 	1,250,000.00	 	 	12/31/2015
	Magna Tranche I Convertible Note	 	3/2/2015	 	 	175,000.00	 	 	3/1/2016
	Magna Tranche I Third Party Note Purchase	 	3/2/2015	 	 	200,000.00	 	 	3/1/2016
	Magna Tranche II Convertible Note	 	3/15/2015	 	 	15,000.00	 	 	3/14/2016
	Magna Tranche III Convertible Note	 	3/27/2015	 	 	29,500.00	 	 	3/26/2016
	Magna Tranche IV Third Party Note Purchase	 	4/8/2015	 	 	200,000.00	 	 	4/7/2016
	Magna Tranche V Convertible Note	 	5/1/2015	 	 	53,000.00	 	 	4/30/2016
	Magna Tranche VI Third Party Note Purchase	 	5/22/2015	 	 	200,000.00	 	 	5/21/2016
	Magna Tranche VII Convertible Note	 	5/27/2015	 	 	85,000.00	 	 	5/26/2016EXPORTER SERVICES AGREEMENT

 

This Exporter
Services Agreement (this “Agreement”) is effective as of the date of the agreement is 3/28/2016 (the “Effective
Date”) and is by and between AmericaTowne, Inc., a Delaware corporation doing business at 4700 Homewood Court, Suite
100 Raleigh, North Carolina 27609 USA (“AmericaTowne”), and Golden Ventures LLC (Golden) a North Carolina Corporation
doing business at 1241 Sappony Drive  Unit 206 Knightdale, NC 27545 USA (“Exporter”). AmericaTowne and
Exporter are collectively referred to as the “Parties” or each individually as a “Party”.

 

WHEREAS, AmericaTowne
is a publicly reporting company with the United States Securities and Exchange Commission (the “SEC”). Through
those agreements disclosed in AmericaTowne’s filings, it represents herein that it has the exclusive right, title and interest
in certain intellectual property rights and other assets used in the introduction, maintenance and facilitation of the exportation
of consumer goods into, amongst other countries, China, through the use of an international import trade platform (“AmericaTowne’s
Exporting Business”).

 

WHEREAS,
AmericaTowne’s Exporting Business consists or will consist of exhibition, showroom and display facilities, support office(s)
and staff located in the United States and China, and the platform consists or will consist of a buyer’s network, and online
websites either directly owned by AmericaTowne or in a partnership with third-parties in order to support the exhibition center,
showroom and network to market imported goods and services to consumers in China (collectively referred to as the “AmericaTowne
Platform”).

 

WHEREAS,
the AmericaTowne Platform is designed to save Exporter time, money, and other resources in testing the market to determine if a
demand exists for their product or service in China. AmericaTowne will use its buyer’s
network, and staff in China and elsewhere to make its commercially reasonable best efforts to promote, distribute and market throughout
the Exporter’s goods and services and identify potential buyers and other business relationships for the Exporter’s
goods or services.

 

WHEREAS, AmericaTowne’s
Exporting Business compliments, in certain circumstances, specific businesses under separate agreement with AmericaTowne through
Management Services and Lease Agreements (“Management Agreement”). The Parties agree that unless otherwise
agreed, the Exporter is not subject to the rights, duties or obligations under the Management Agreement; rather, the rights, duties
and obligations set forth herein are distinct from those under the Management Agreement. The Parties agree that to the extent they
are or shall become parties to a Management Agreement, this Agreement and the Management Agreement shall be merged forming a fully
integrated agreement under Delaware law, and shall be read consistent with each other.

 

WHEREAS, the Parties
agree that these recitals are not mere statements but statements in which they have each relied on in entering into this Agreement.

 

NOW, THEREFORE,
for the consideration stated herein, the Parties agree as follows:

    	-1- 

    	 

    

1. Term
and Termination. This Agreement shall be effective on the Effective Date. This Agreement shall expire fifteen (15) years
after the Effective Date, unless otherwise extended herein pursuant to Section 7, or terminated early as provided below for
breach of a representation, warranty or term or condition of performance. The Parties agree that termination of this
Agreement does not terminate AmericaTowne’s right to a Transaction Fee under Section 6(c).

 

2. Good and
Services Offered Through The AmericaTowne Platform. The goods and services covered by the AmericaTowne Platform, and the types
of goods directed to wholesalers, agents, resellers or consumers, through online websites in China or physical locations, includes,
but is not limited to, the following:

 

(a)Imported
food, agricultural, fishery and forestry products, personal care and daily necessities products, home decoration, accessories,
and handicraft;

 

(b)
Imported aviation industry, aircraft and helicopter and general aviation sales, training, maintenance, and parts, operations,
club and financing, yachts; jewelry, and other luxury items;

 

(c)Imported
hospital equipment and supplies, and medical equipment and supplies; general machinery, computers, electronics, equipment and supplies;

 

(d)Leisure
community development, and senior care facilities, senior care products, and senior care services;

 

(e)Imported
high-end technology, other imported items and investment and financial services; and/or

 

(f)Other
goods or services deemed appropriate by AmericaTowne based on its expertise and experience in the target markets.

 

3.
The AmericaTowne Platform Membership. For the consideration set forth herein, and pursuant
to the terms and conditions of this Agreement, AmericaTowne hereby grants a membership license to Exporter to test, market and
sample the Exporter’s goods and services in China and any other proper location. The Exporter membership solely pertains
to exporting  clothes, apparels, shoes and women bags, and other areas as AmericaTowne Inc. designates. 

 

4. Sample
and Test Market Program. For the consideration set forth herein, AmericaTowne shall provide Exporter with access to and participation
in a sample and test market program assessing market acceptance and demand of their products or services through its “Sample
and Test Market Program,” which incorporates the following terms and conditions (where expanded or contracted where deemed
necessary):

 

    	-2- 

    	 

    

 

(a)Exporter
may send samples or examples of products or services, respectively, to the AmericaTowne Platform, and if deemed strategically beneficial
by AmericaTowne, Exporter may send specific videos, brochures and other promotional material to explain, show, and demonstrate
the products or services features to the Chinese consumer and or wholesale customers;

 

(b)AmericaTowne
agrees that Exporter, other than the consideration set forth herein, shall not be charged any extra amounts for participation in
the Sample and Test Market Program;

 

(c)Exporter
agrees to be responsible for those costs associated with packaging, shipping and other reasonable and commercially acceptable costs
to send the samples to the AmericaTowne Trading Platform, including where applicable, Value Added Tax (VAT) or custom costs;

 

(d)Upon
receipt of samples, brochures, and other promotional and marketing materials, AmericaTowne will be responsible for displaying Exporter’s
goods and services in its online portal, and/or exhibition and showroom facilities in China, as well as marketing Exporter’s
products through marketing channels. AmericaTowne, in conjunction with any representative of Exporter, will exercise commercially
reasonable discretion in determining how Exporter’s products and services are exhibited in the AmericaTowne Trading Platform;

 

(e)AmericaTowne
will use its best efforts to match Exporter with an end buyer of its products or services. Exporter agrees that there is no assurance
that a demand for its product will exist or an end buyer will be found. The Sample and Test Market Program allows Exporter an opportunity
to (i) test the demand and market for its products and service by exhibiting it products or service in the AmericaTowne Platform,
and (ii) receive follow-on orders for its products or services, if a demand and buyers exist, without expending normal costs for
exporting; and

 

(f)Exporter
has one-year from the Effective Date to participate in the Sample and Test Market Program. Afterwards, provided no transaction
has occurred in the AmericaTowne Trading Platform, Exporter agrees to pay a fee equal to 25% of the original Service fee within
thirty (30) days (the “Extension Fee”). To the extent the Extension Fee is not paid, Exporter’s participation
and membership in the Sample and Test Program terminates. In the event of termination, the Parties agree that the balance of this
Agreement remains in full force and effect.

    	-3- 

    	 

    

5. Accepted Market Program.
Provided that AmericaTowne concludes that the Sample and Test Market Program has resulted in market demand and target consumers
for Exporter’s goods and services, AmericaTowne will notify Exporter within a commercially reasonable time of its opinions,
conclusions and recommendations, and in turn, provide the following services (the “Accepted Market Program”):

 

(a)Advise
Exporter in the negotiation of price, and terms and conditions of sale of Exporter’s goods and/or services;

 

(b)Assist
Exporter in all phases of the exporting process, including but not limited to, labeling and preparation for exporting, customs
inspection and clearance, shipping, warehousing, and payment; and

 

(c)Propose
form and substance of purchase orders to be presented to the target buyer setting forth, amongst other things, terms and conditions
of sale, costs, and payment to the Exporter (or its assignee or designee) with AmericaTowne being responsible for currency exchange
into United States dollars;

 

(d)AmericaTowne
will advise Exporter of the various components of the selling price including, but not limited to, normal product costs,
shipping costs, other related expenses, and customs and VAT. Exporter will make the final determination of its sale price
offered to the buyer;

 

(e)AmericaTowne
will advise Exporter on available incentives and accommodations as a result of AmericaTowne operating out of a Bonded Port Zone
in China, such as, but not limited to, making the determination that the buyer assumes VAT and customs costs by including such
costs in the price of the product or service, and reduced warehousing and logistics product costs in China;

 

(f)From
time to time state and federal agencies will have marketing and promotional programs to assist small businesses in exporting their
products and services. AmericaTowne will work with Exporter, where warranted, to take advantage of the various funding, grants
and promotional opportunities available;

 

(g)In
certain cases, special certification will be required from the appropriate authorities in China, prior to export of Exporter’s
goods and/or services in conjunction with an end buyer’s purchase order. In such a case, AmericaTowne will assist Exporter
in securing the proper certification. Exporter agrees to be responsible for all costs of such certification. Prior to any such
certification action, AmericaTowne will advise Exporter, and Exporter will have the sole discretion to determine if a certification
is to be obtained, and understand if such certification is obtained, Exporter (or its assignee or designee) is responsible for
the costs of certification.

    	-4- 

    	 

    

6. Consideration.
Exporter agrees to pay the following consideration for the services set forth herein:

 

			

(a)Service
Fee and Deliverables. Subject to Section 6(c), Exporter agrees to pay AmericaTowne a nonrefundable service fee of $55,000.00
USD on the Effective Date (the “Service Fee”). The Service Fee is recognized when deliverables are provided. The Service
Fee is paid for deliverables including a market analysis, review of proposed goods and services, expectations for supply and demand
in the market, how to conduct export business in China, information on financing, the export tax savings programs, and selecting
and assigning a sister tax saving company. The Service Fee is to be paid as follows: $3,500 upon signing this agreement; and monthly
payments of $1,062.50 a month for forty-eight months. The first monthly payment will start on 15 May 2016, and run for 48 consecutive
months. At the discretion of AmericaTowne Inc. the Exporter may be required to sign a note for outstanding service fees. In addition
AmericaTowne Inc. at its sole discretion may exchange other assets or items of value for payments due.

 

(b)Transaction
Fee. Exporter agrees to pay a Transaction Fee for each transaction between Exporter and the end buyer arranged through or facilitated
by AmericaTowne in the amount of 8% (the “Transaction Fee”). The Transaction Fee shall include the services provided
by AmericaTowne in the AmericaTowne Platform, Sample and Test Market Program, and if applicable, Accepted Market Program. The Transaction
Fee shall be recognized as revenue after the transactions is completed. The Transaction Fee shall be first deducted by AmericaTowne
from the amount the end buyer owes Exporter, plus other fees, if any, agreed to by Exporter with the balance remitted to Exporter
within two (2) days of receipt from the end buyer, unless commercial circumstances dictate additional time.

 

(c)Refund
of Service Fee. From time to time there may be products or services that are on the restricted import list in China. If
Exporter’s product or service is on this list, AmericaTowne will advise Exporter of such restriction and Exporter will
be entitled to a refund of the Service Fee minus any setoffs due under this Agreement, i.e. outstanding Transaction Fee. This
Section 6(c) shall be null and void upon termination of this Agreement, as provided for in Section 1, above.

    	-5- 

    	 

    

7. Extension of Term.
Provided Exporter’s goods and services are in demand and Exporter is processing sales generating Transaction Fees, as set
forth in Section 6, within fifteen (15) years from the Effective Date, Exporter shall have an option to (a) continue with its membership
under Section 2 at no additional fee, or (b) option of developing single point of sales, distribution, networking, and logistics
facilities separate and distinct from AmericaTowne for a mutually agreeable reduced rate, which shall be agreed upon in writing
prior to thirty (30) days from the termination of fifteen (15) years from the Effective Date. The Exporter has the option of choosing
option (b) above at its discretion.

 

8. Right to Use Promotional
Material and Ownership of Samples. Exporter grants AmericaTowne exclusive rights to use the marketing and promotional material
provided by Exporter and Exporter certifies that it has complied with any and all intellectual property rights pertaining to the
material provided. Any and all Exporter samples sent to the AmericaTowne Platform shall become the property of AmericaTowne once
received and will be solely used to promote and market Exporter’s products or service within AmericaTowne Platform.

 

9. Country of Origin
Taxes and Fees. Exporter agrees that it is solely responsible for paying any and all taxes, if required, to the country of
origin of the goods and services. For purchase and sales orders received after the Sample and Test Market Program, Exporter agrees
that any customs and VAT payable in China will be paid by either including any such taxes in the end buyer’s purchase price
in the purchase order, and paying such taxes upon payment by buyer or paying such taxes directly to customs prior to the goods
being accepted by the buyer.

 

10. Liability and Claims.
AmericaTowne shall in no circumstance be liable to Exporter or authorized users of the AmericaTowne Platform for any error, mistake,
misuse, delay, loss or omission whatsoever and howsoever occurring in communications between them or the level of safety with which
they are conducted. Exporter unconditionally and irrevocably undertakes that it will not make any claim either legal or equitable
against the Company, its affiliates and/or agents for any losses, damages, costs or expenses that it may suffer or incur as a result
of or otherwise in connection with such error, mistake, misuse, delay, loss or omission.

 

11. Indemnity. Exporter
agrees to fully and unconditionally indemnify and hold AmericaTowne, and its agents, representatives, contractors, attorneys and
employees harmless against any claims, damages, penalties, losses or any expenses howsoever incurred as a result of or in connection
with (i) any breach or alleged breach of representation, warranty or undertaking given by the exporter herein; (ii) any infringement
or alleged infringement of intellectual property rights, including but not limited to patents, registered designs, copyrights or
trade mark infringement arising as a result of the insertion of any material by Exporter or any agent of Exporter in AmericaTowne’s
website and/or AmericaTowne Platform; (iii) any claim that the material involves false or deceptive advertising or sale practices;
(iv) any claim arising or in connection with proof of quality and/or (v) any third party claims whatsoever arising in or derived
from or as a result of the insertion or providing any material by Exporter.

 

    	-6- 

    	 

    

12. Proof of Quality.
All statements, claims or representations (“Claims”) in material submitted by Exporter for its products or services
regarding the quality of its products or services must be (a) accompanied by a clear and written reference in the material to the
independent survey, research or other source upon which the Claims are based; and (b) supported by the relevant independent survey,
research or other source, a copy of which must be provided to AmericaTowne.

 

13. Representations
and Warranties of Exporter. Exporter hereby represents and warrants to AmericaTowne as follows:

 

(a)This
Agreement has been duly and validly executed and delivered by an authorized person and constitutes Exporter’s legal, valid
and binding obligation, enforceable against it in accordance with its terms; and that the execution, delivery and performance of
this Agreement is within the signator’s legal capacity and power; has been duly authorized by all requisite action on the
signator’s part; requires the approval or consent of no other persons; and neither violates nor constitutes a default under
the (a) provision of any law, rule, regulation, order, judgment or decree to which Exporter is subject or which is binding upon
Exporter, or (ii) the terms of any other agreement, document or instrument applicable to Exporter or binding upon it.

 

(b)That,
in the event of any breach by Exporter of any of its warranties, undertakings and/or other provisions of this Agreement, AmericaTowne
shall have the right at its sole and absolute discretion to remove from the AmericaTowne Platform any material or samples placed
by Exporter and/or to terminate this Agreement immediately without notice, in which case AmericaTowne shall not be liable to refund
the Service Fee or any earned, but yet paid, Transaction Fee for such material so removed and Exporter hereby undertakes that it
will not make any claims both legal or equitable against AmericaTowne, its employees, contractors, attorneys and/or agents for
any losses, damages, costs or expenses that it may suffer or incur as a result of or otherwise in connection with such removal.

 

    	-7- 

    	 

    

 

(c)Exporter
represents and warrants that it shall act in good faith in all respects and undertakes that (i) no third party intellectual property
rights or any other rights will be infringed as a result of the publication of any listing on the AmericaTowne Platform or any
website utilized by AmericaTowne in featuring Exporter’s products or services and/or in any material supplied by Exporter
to AmericaTowne in relation to or otherwise in connection with Exporter’s products or services; (ii) all of Exporter’s
products or services comply with and will comply with all applicable laws and regulations, including without limitation, those
relating to advertising; (iii) Exporter has obtained all necessary consents and licenses for using the products or services; and
(iv) Exporter, if exporting US origin automobiles, will only export used automobiles, at no time will the Exporter attempt to export
new automobiles from the US to China through the AmericaTowne Platform.

 

(d)Exporter
agrees that AmericaTowne reserves the sole and absolute discretion to decline to publish any material if it reasonably suspects
that Exporter may involve the infringement of intellectual property rights or other rights of any third party, unless Exporter
can, within three (3) business days of being requested to do so, provide evidence to the satisfaction of the AmericaTowne that
it has the right to place use the material in question and/or the material does not infringe any intellectual property rights
of any third party. Exporter agrees that AmericaTowne shall remove the material immediately if it reasonably suspects that the
material may involve the infringement of intellectual property rights or other rights of any third party, unless it subsequently
determines, using its own discretion, that the material does not infringe any intellectual property rights of any third party.

 

(e)“While
engaged in exporting, the Exporter warrants and agrees that it will use the services of an Interest Charge - Domestic International
Sales Corporation (IC-DISC) to maximize its tax savings. AmericaTowne Inc. at its sole discretion will determine the IC-DISC the
Exporter (Licensee) will use. The costs and tax savings for utilizing the services of the IC-DISC shall be determined and agreed
to by the Exporter and the assigned IC-DISC. Failure to use a IC-DISC designated by AmericaTowne will result in a default under
the agreement.”

 

(f)EXPORTER
ACKNOWLEDGES AND AGREES THAT IT HAS READ THIS AGREEMENT AND AGREE TO ALL ITS TERMS AND CONDITIONS. EXPORTER HAS INDEPENDENTLY EVALUATED
THE DESIRABILITY OF PARTICIPATING IN THE AMERICATOWNE PLATFORM, SAMPLE AND TEST MARKET PROGRAM,
AND IF APPLICABLE, ACCEPTED MARKET PROGRAM AND IS NOT RELYING ON ANY REPRESENTATION, GUARANTEE, OR STATEMENT OTHER THAN
AS SET FORTH IN THIS AGREEMENT.

    	-8- 

    	 

    

14. Representations
and Warranties of AmericaTowne. AmericaTowne hereby represents and warrants to Exporter as follows:

 

(a)It
shall provide Exporter to a full-time staff in China to provide support and assistance, and to identify a network of potential
buyers in China for Exporter’s products and services;

 

(b)It
shall provide and coordinate any and all actions and procedures for customs and inspection clearance procedures and methods for
Exporter that will allow them to clear customs and inspection in China in a prompt manner;

 

(c)It
shall provide methods and procedures for Exporter’s products and services to be sampled and displayed in the AmericaTowne
Platform;

 

(d)It
shall exercise commercially reasonable efforts to ensure that Exporter shall pay the least amount of VAT and other taxes required
by the laws of China in full compliance with the laws of China;

 

(e)It
shall exercise commercially reasonable efforts in providing various financial programs to assist and support buyers in purchasing
products from Exporter; and

 

(f)It
shall exercise commercially reasonable efforts to ensure high-level government officials from the Africa, USA and China in commerce,
trade, investments and policy are invited to review and participate in the AmericaTowne Platform.

 

15.
Relationship of Parties. The Parties agree that AmericaTowne is an independent contractor,
and nothing in this Agreement will create any partnership, joint venture, agency, franchise, or employment relationship between
them.

 

16. Limitation of
Liability. Exporter agrees that AmericaTowne will not be liable for any indirect, incidental, special, or consequential
punitive or multiple damages, including without limitation any damages resulting from loss of use, loss of business, loss of
revenue, loss of profits, or loss of data, arising in connection with this Agreement, AmericaTowne’s performance of
services or of any other obligations relating to this Agreement, even if AmericaTowne has been advised of the possibility of
such damages. The foregoing limitation of liability shall apply regardless of the cause of action under which such damages
are sought.

    	-9- 

    	 

    

17. Disclaimers of Warranty.
AmericaTowne makes no express or implied warranties or representations with respect to the AmericaTowne Platform, Sample and Test
Market Program, or Accepted Market Program (including, without limitation, warranties of fitness for a particular purpose, merchantability,
non-infringement, or any implied warranties arising out of a course of performance, dealing, or trade usage). In addition, AmericaTowne
makes no representation that the operation of the AmericaTowne Platform (including exhibition showrooms, websites and other network
properties) will be uninterrupted or error-free, and AmericaTowne will not be liable for the consequences of any interruptions
or errors.

 

18. Settlement of Disputes.
The Parties agree to use their best efforts to settle any dispute arising from the interpretation or performance in connection
with this Agreement through negotiations. In case no settlement can be reached, subject to Section 25 or Section 26, below,
either Party may submit such matter to the American Arbitration Association (“AAA”).The proceedings shall be conducted
in English and be conducted in Mecklenburg County, North Carolina, the United States of America. The arbitration award shall be
final and binding upon the Parties. This Section shall not be influenced by the termination or elimination of this Agreement. Each
Party shall continue to perform its obligations in good faith according to the provisions of this Agreement except for the matters
in dispute.

 

19. Force Majeure.
Force Majeure, which includes but is not limited to, acts of governments, acts of nature, fire, explosion, typhoon, flood, earthquake,
tide, lightning, war, means any event that is beyond the Party’s reasonable control and cannot be prevented with reasonable
care. However, any shortage of credit, capital or finance shall not be regarded as an event of Force Majeure. The affected Party
who is claiming to be not liable to its failure of fulfilling this Agreement by Force Majeure shall inform the other Party, without
delay.

 

20. Notices. Notices
or other communications required to be given by any Party pursuant to this Agreement shall be written in English and shall be deemed
to be duly given when it is delivered by email to the address stated below, or as subsequently supplemented, or by regular United
States mail to the addresses identified in the introductory paragraph of this Agreement.

 

21. Severability.
Any provision of this Agreement that is invalid or unenforceable because of any inconsistency with relevant law shall be ineffective
or unenforceable within such jurisdiction where the relevant law governs, without affecting in any way the remaining provisions
hereof.

 

22. Amendments and Supplement.
Any amendment and supplement of this Agreement shall come into force only after Parties sign a written document.

 

23.
Governing Law; Consent to Jurisdiction. This Agreement will be governed, construed
and enforced in accordance with and governed by the laws of the United States and the State of Delaware applicable to agreements
made and to be performed in such jurisdiction without reference to conflicts of law principles.

 

24. Attorney’s
Fees. If a Party shall commit a material breach of a term hereof, such party shall
pay to the successful party all of the successful party’s costs and expenses, including, without
limitation, attorneys’ and expert witness fees, incurred by such party in enforcing the terms of this
Agreement.

    	-10- 

    	 

    

25. Confidentiality.
The Parties agree that, by virtue of this Agreement, they may receive or become aware of information belonging or relating to the
other, its business, business plans, affairs or activities, which information is confidential and proprietary to the other party
and/or its suppliers and/or customers and in respect of which they are bound by a strict duty of confidence (“Confidential
Information”).

 

In consideration of such
Confidential Information being disclosed or otherwise made available to either Party for the purposes of the performance of this
Agreement, the Parties agree that they will not at any time, either before or after the termination of this Agreement, and either
directly or indirectly, disclose, divulge or make unauthorized use of any Confidential Information, except to the extent to which
such Confidential Information, is publicly known at the time of its disclosure or being made available to them; (b) after such
disclosure or being made available to them, becomes publicly known otherwise than through a breach of this provision; and/or (c)
disclosure is required by law, regulation or order of a competent authority (including any regulatory or governmental body or securities
exchange) by a Party, provided that, where practicable, the other Party is given reasonable advance notice of the intended disclosure.
The Parties agree that upon the earlier of a request from the other party or the termination of this Agreement, each Party shall
return to the other or destroy all documents or records in any medium or format containing any Confidential Information that are
in its possession or control and will not retain any copies of them, and the provisions of this Section 24 will continue without
limit of time, notwithstanding the termination of this Agreement for any reason.

 

This Section 25 does not
apply to AmericaTowne’s reporting obligations as a publicly-reporting company under the rules promulgated by the SEC.

 

The Parties irrevocably
consent that any legal action or proceeding against them under, arising out of or in any manner relating to this Section 24, may
be brought only in a court with jurisdiction located in, or the federal district court the district of which includes, Mecklenburg
County, North Carolina and the Parties each irrevocably consent to that venue and to the personal jurisdiction thereof. The Parties
hereby expressly and irrevocably waive any claim or defense in any action or proceeding based on any alleged lack of personal jurisdiction,
improper venue or forum non conveniens or any similar basis.

 

26. Noncompetition and
Noncircumvention. The Parties agree that each will refrain, directly or indirectly from utilizing information gained from the
other in a way other than as contemplated hereunder. Further, neither Party will circumvent the other by attempting to take advantage
of research and development performed by the other. The Parties agree that this Section 26 is an essential and material part of
this Agreement. As of the Effective Date, Exporter agrees that it will take no action to compete with or adversely affect AmericaTowne’s
efforts to secure funding, where necessary, primarily through Exim Bank and elsewhere under the guidance and the direction of AmericaTowne.
As such, no Party to this Agreement shall attempt to compete or circumvent in any way at any time the purpose of this Agreement
or those including the entities and people that have been charged to carry out this Agreement.

    	-11- 

    	 

    

The Parties
irrevocably consent that any legal action or proceeding against them under, arising out of or in any manner relating to this
Section 26, may be brought only in a court with jurisdiction located in, or the federal district court the district of which
includes, Mecklenburg County, North Carolina and the Parties each irrevocably consent to that venue and to the personal
jurisdiction thereof. The Parties hereby expressly and irrevocably waive any claim or defense in any action or proceeding
based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis.

 

27. Successors and Assigns.
This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and assigns.
Nothing in this Agreement shall be construed to create any rights in third parties as third-party beneficiaries or otherwise. This
Agreement shall not be assigned to any party.

 

28. Counterpart Signatures.
This Agreement may be executed in numerous counterparts, all of which shall be considered one and the same agreement. For purposes
of this Agreement, facsimile or electronic signatures shall be considered original signatures.

 

29. Assignment and Subcontracting.
This Agreement is personal to the Parties and, except to the extent necessary for the collection of outstanding bills through a
factoring agent, Exporter shall not without the prior written approval of the Company: (a) assign, mortgage, charge or otherwise
transfer or deal in, or create any trust over, any of its rights; or (b) subcontract or otherwise delegate the whole or any part
of its rights or obligations under this contract to another person.

 

IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative.

 

AMERICATOWNE

 

 

 

By/s/ Alton Perkins                                                          3/28/2016

Alton Perkins, CEO

 

EXPORTER 

 

 

 

By/s/ Michelle Nwizu                                                      3/30/2016

Michelle Nwizu, President

    	-12-

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