Document:

Exhibit 4.3

 

NEITHER THIS SECURITY
NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH
A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

STAFFING
360 SOLUTIONS, inc.

 

	Warrant Shares: 3,920,000	Initial Issuance Date: July 8, 2015       

 

This COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, Hillair Capital Investments L.P. 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 a Payment Breach (as defined below) occurs (the “Initial Exercise Date”)
and on or prior to the close of business on the five (5) year anniversary of the Initial Issuance Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Staffing 360 Solutions, Inc., a Nevada corporation (the
“Company”), up to Three Million Nine Hundred Twenty Thousand (3,920,000) shares (as subject to adjustment hereunder,
the “Warrant Shares”) of Common Stock. The purchase price of one (1) share of Common Stock under this Warrant
shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.          Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”), dated as of July 8, 2015, among the Company and the Purchasers signatory
thereto.

 

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Section 2.          Exercise.

 

a)        Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or
agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form attached
hereto as Exhibit A and within three (3) Trading Days of the date said Notice of Exercise is delivered to the Company, the
Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s
check drawn on a United States bank or, if available, pursuant to the cashless exercise procedure specified in Section 2(c) below.
No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization)
of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to
physically surrender this Warrant to the Company until (i) the Holder has purchased all of the Warrant Shares available hereunder
and the Warrant has been exercised in full or (ii) the Company has timely made all payments, including principal and interest thereon,
due and payable under the Debentures, in which case, the Holder shall surrender this Warrant to the Company for cancellation within
three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company or of the date on which the Debentures
are repaid in full by the Company (the “Repayment Date”), as the case may be; provided, that the Holder
shall not be required to surrender this Warrant pursuant to the foregoing subclause (ii) in the event that a Payment Breach (as
defined below) has occurred as of the Repayment Date. Partial exercises of this Warrant resulting in purchases of a portion of
the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares
purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall
maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection
to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance
of this Warrant, acknowledge and agree that, by reason of the provisions of this Section 2(a), following the purchase of a portion
of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than
the amount stated on the face hereof.

 

b)        Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $1.00, subject to adjustment hereunder
(the “Exercise Price”). If the Company shall fail to timely make any payment due and payable under a Debenture
and such breach has not been cured by the Company within three (3) Business Days after the applicable payment due date (a “Payment
Breach”), then (x) on the second (2nd) occurrence of any such Payment Breach, the Exercise Price shall be
reduced to $0.50 per share, subject to adjustment hereunder and (y) on the third (3rd) occurrence of any such Payment
Breach, the Exercise Price shall be reduced to $0.30 per share, subject to adjustment hereunder. In addition to the other adjustments
provided herein, upon any adjustment to the Conversion Price of the Debentures as contemplated by Section 4(b) of the Debentures,
the Exercise Price shall be reduced, and only reduced, to the lesser of (i) the then effective Exercise Price, as adjusted, or
(ii) the Conversion Price, as adjusted under Section 4(b) of the Debentures, and the number of Warrant Shares issuable hereunder
shall be increased such that the aggregate Exercise Price payable hereunder, after taking into account the decrease in the Exercise
Price, shall be equal to the aggregate Exercise Price prior to such adjustment. The Company shall promptly notify each Holder of
the applicable adjustment to the Exercise Price as of any Trigger Date (as defined in the Debentures) or as of the end of the 3
Business Day cure period in respect of a Payment Breach, as the case may be (an “Adjustment Notice”). For purposes
of clarification, whether or not the Company provides an Adjustment Notice pursuant to this Section 2(b), each Holder shall receive
Warrant Shares based upon the Exercise Price as adjusted pursuant to this Section 2(b), regardless of whether a Holder accurately
refers to such price in any Notice of Exercise.

 

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c)        Cashless
Exercise. If at any time after the six (6) month anniversary of the Purchase Agreement, there is no effective Registration
Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

		(A) =	the VWAP on the Trading Day immediately preceding the
date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

		(B) =	the Exercise Price of this Warrant, as adjusted hereunder;
and

 

		(X) =	the number of Warrant Shares that would be issuable upon
exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares.  The Company agrees not
to take any position contrary to this Section 2(c).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market,
the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable,
(c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then
reported in the “Pink Sheets” published by OTC Markets, Inc. (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 (d) in all other cases,
the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers
of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of
which shall be paid by the Company.

 

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Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

		d)	Mechanics of Exercise.

 

i.            Delivery
of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall be transmitted by the Transfer Agent to the Holder
by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through
its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and
either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant
Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder pursuant to Rule 144, and otherwise by physical
delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the
number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the
Notice of Exercise by the date that is three (3) Trading Days after the delivery to the Company of the Notice of Exercise (such
date, the “Warrant Share Delivery Date”). The Warrant Shares shall be deemed to have been issued, and Holder
or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all
purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise,
if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such
shares, having been paid. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of
Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder within two (2) Trading Days following the Warrant
Share Delivery Date, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based
on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading
Day on the fifth (5th) Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant
Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise, with such amount being paid to the
Holder in Common Stock valued at a 50% discount to the average VWAP of the Common Stock for the twenty (20) Trading Days immediately
preceding, but not including, the Warrant Share Delivery Date.

 

ii.         Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical to this Warrant.

 

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iii.         Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i)
by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.         Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares by the Warrant Share Delivery Date
pursuant to an exercise in accordance with the provisions of Section 2(d)(i) above, and if after such Warrant Share Delivery Date
the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm
otherwise purchases, 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 (A) pay to the Holder,
in Common Stock valued at a 50% discount to the average VWAP of the Common Stock for the twenty (20) Trading Days immediately preceding,
but not including, the Warrant Share Delivery Date, the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased exceeds (y) the product
of (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue
multiplied by (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) 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 (in which case such exercise shall be deemed rescinded) 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. For example,
if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise
of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, then under clause (A)
of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000 in Common Stock valued at a 50% discount
to the average VWAP of the Common Stock for the twenty (20) Trading Days immediately preceding, but not including, the Warrant
Share Delivery Date. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In and, upon request of the Company, evidence of the amount of such loss. 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 shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms hereof.

 

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v.           No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

vi.         Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of Warrant Shares, all of which taxes and expenses shall be paid by the Company,
and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided,
however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant
when surrendered for exercise shall be accompanied by the Assignment Form in the form attached hereto as Exhibit B (the
“Assignment Form”) duly executed by the Holder, and the Company may require, as a condition thereto, the payment
of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required
for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing
corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

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

 

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e)         Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder
or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth
in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of
the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this
Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company, or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two (2) Trading Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(e); provided, that the Beneficial Ownership Limitation in no event shall
exceed 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon exercise of this Warrant and the provisions of this Section 2(e) shall continue to apply with respect to such
increased or decreased Beneficial Ownership Limitation, as the case may be. Any increase in the Beneficial Ownership Limitation
will not be effective until the sixty-first (61st) day after such notice is delivered to the Company. The provisions
of this Section 2(e) shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this
Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial
Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such
limitation. The limitations contained in this Section 2(e) shall apply to a successor holder of this Warrant.

 

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Section 3.          Certain
Adjustments.

 

a)         Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for the avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a)
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

b)         [RESERVED]

 

c)         Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations on exercise hereof, including, without limitation, the Beneficial Ownership Limitation) immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date
as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result
in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase
Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent)
and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto
would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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d)         Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including, without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in
such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution
to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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e)         Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one (1) or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of fifty percent (50%) or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly, in one (1) or more related transactions effects any reclassification,
reorganization or recapitalization 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, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than fifty percent (50%) of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or
party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock
of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(e) on the exercise of this Warrant). 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 (1) 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 this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of
a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable
at any time concurrently with, or within thirty (30) days after, the consummation of the Fundamental Transaction, purchase this
Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised
portion of this Warrant on the date of the consummation of such Fundamental Transaction. “Black Scholes Value”
means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function
on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction
for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to
the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an
expected volatility equal to the greater of one hundred percent (100%) and the one hundred (100) day volatility obtained from the
HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction,
(C) the underlying price per share used in such calculation shall be the sum of the price per share being offered in cash, if any,
plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction, and (D) a remaining option
time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination
Date. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents
in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory
to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option
of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and
with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the
relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock,
such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance
to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

 

    	10

    	 

    

 

f)         Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

g)         Notice
to Holder.

 

i.            Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of
Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

    	11

    	 

    

 

ii.         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least twenty (20) calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose
of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders
of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined
or (y) the date on which such reclassification, consolidation, merger, sale, transfer, share exchange, dissolution, liquidation
or winding up is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock
of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, share exchange, dissolution, liquidation or winding up; provided
that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains,
material, non-public information regarding the Company or any of the Subsidiaries, the Company shall within one (1) business day
file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except
as may otherwise be expressly set forth herein.

 

Section 4.             Transfer
of Warrant.

 

a)           Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions
of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration
rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with an Assignment Form with respect to this Warrant duly executed by the Holder or its agent or attorney and
funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable,
and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the
Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3)
Trading Days of the date the Holder delivers an Assignment Form to the Company assigning this Warrant in full.
The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

 

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b)         New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the original
Issue Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)         Warrant
Register. The Company shall register this Warrant, 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 this 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.

 

d)         Transfer
Restrictions. If, at the time
of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either
(i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible
for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the
Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may
be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

e)         Representation
by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any
exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for
distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, except pursuant to sales registered under or exempted from registration under the Securities Act.

 

Section 5.          Miscellaneous.

 

a)         No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in
Section 3.

 

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b)           Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)           Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

d)           Authorized
Shares.

 

The Company
covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be
listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by
the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such
issue).

 

Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant,
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

    	14

    	 

    

 

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

e)           Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

 

f)           Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered and the Holder does
not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)          Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact that all
rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any provision of
this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be
sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

 

h)          Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

 

i)           Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

j)           Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

    	15

    	 

    

 

k)          Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

l)           Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the prior written consent of the Company and the Holder.

 

m)          Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

n)          Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature Page Follows)

 

    	16

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	STAFFING 360 SOLUTIONS, inc.
	 	 
	 	By:	/s/ Jeff R. Mitchell
	 	 	Name: Jeff R. Mitchell
	 	 	Title: Chief Financial Officer

 

    	17

    	 

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

		To:	STAFFING 360
SOLUTIONS, inc.

 

(1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

(2) Payment
shall take the form of (check applicable box):

 

☐ in lawful
money of the United States; or

 

☐ if permitted,
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 2(c), to
exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
set forth in Section 2(c).

 

(3) Please
issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

	 	 

 

The Warrant Shares shall be delivered to
the following DWAC Account Number:

 

	 	 

 

	 	 

 

	 	 

 

(4)     Accredited Investor.
The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933,
as amended.

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity: 	 

	Signature of Authorized Signatory of Investing Entity: 	 

	Name of Authorized Signatory:  	 

	Title of Authorized Signatory: 	 

	Date: 	 

 

    	 

    	 

    

 

EXHIBIT B

 

ASSIGNMENT FORM

 

(To assign the
foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED,
the foregoing Warrant and all rights evidenced thereby are hereby assigned to

  

	Name:	 	 
	 	 	(Please Print)
	 	 	 
	Address:	 	 
	 	 	(Please Print)
	 	 	 
	Dated: _______________ __, ______	 	 
	 	 	 
	Holder’s Signature:_____________________	 	 
	 	 	 
	Holder’s Address: _____________________Exhibit 4.4

 

EXECUTION
COPY

 

THIS PROMISSORY
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE
WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO MAKER
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

 

This
promissory note and the indebtedness and securities evidenced hereby are subordinated in accordance with and subject to the terms
of that certain Subordination Agreement (as amended, restated, supplemented or modified from time to time, the “Subordination
Agreement”), dated as of July 8, 2015 by and among Alison Fogel and David Fogel, a married couple residing in the State of
Maine, jointly and severally, Staffing 360 Solutions, Inc., a Nevada corporation, and MidCap Funding X Trust, in its capacity as
agent (together with its affiliates and their respective successors and assigns, “Senior Agent”) for the Senior Lenders
(as defined in the Subordination Agreement), and each holder and transferee of this promissory note, by its acceptance hereof,
irrevocably agrees to be bound by the provisions of the Subordination Agreement.

 

UNSECURED
CONVERTIBLE PROMISSORY NOTE 

 

Issuance
Date: July 8, 2015

Aggregate
Principal Amount: $2,498,379.00

 

For value received,
Staffing 360 Solutions, Inc., a Nevada corporation (“Maker”), promises to pay to Alison Fogel and David
Fogel, a married couple residing in the State of Maine (each, a “Payee” and together, “Payees”),
an aggregate principal sum of Two Million Four Hundred Ninety-Eight Thousand Three Hundred Seventy-Nine U.S. Dollars ($2,498,379.00)
(the “Aggregate Principal Amount”), with fifty-one percent (51%) of the Aggregate Principal Amount payable
to Alison Fogel and forty-nine percent (49%) of the Aggregate Principal Amount payable to David Fogel, together with interest
accrued but unpaid thereon, at the rate and on the terms set forth below in this promissory note (this “Note”).
The date of this Note is the date first set forth above as the “Issuance Date” (the “Issuance Date”).
This Note is being issued in connection with that certain Equity Purchase Agreement, dated as of the date hereof (the “Purchase
Agreement”), by and among Payees, Lighthouse Placement Services, LLC, a Massachusetts limited liability company
(the “Company”) and Maker, and is the Three Year Note referenced therein. All capitalized terms used
but not defined herein shall have the meanings ascribed to such terms in the Purchase Agreement. The Aggregate Principal Amount
of this Note (and each Payee’s portion thereof), and the dollar amount of each Quarterly Installment (as defined below)
may be increased or decreased, as the case may be, in accordance with Section 1.5(d) of the Purchase Agreement, in which case
this Note shall be amended to reflect the adjusted Aggregate Principal Amount and Maker shall promptly thereafter amend the Payment
and Amortization Schedule (as defined below).

 

    	 

    	 

    

 

1.          Repayment.
All payments of interest and principal under this Note shall be in lawful money of the United States of America in immediately
available funds, at the address of each Payee on the books of Maker or at such other place, or by wire transfer of funds to an
account of each Payee, as such Payee may designate in writing to Maker. Unless this Note is paid or otherwise satisfied in full
as set forth herein, or the obligations hereunder are converted into Conversion Shares in accordance with Section 6, and
otherwise subject to Sections 3 and 7(b), payments of principal and interest on this Note shall be made in installments
each fiscal quarter, (a) for the first eight (8) fiscal quarters ending after the Issuance Date (including the fiscal quarter in
which the Issuance Date occurs), on a straight-line basis amortizing the payments of principal and interest on this Note over a
five (5) year period (with the amount for the partial fiscal quarter in which the Issuance Date occurs allocated on a fractional
basis based on the number of remaining days in the fiscal quarter from and after the Issuance Date) (the “Initial Quarterly
Installments”), each to be set forth in a Payment and Amortization Schedule to be delivered by Maker to Payees promptly
(but in any event within ten (10) Business Days) after the Issuance Date and reasonably acceptable to Payees setting forth the
payments under this Note and the allocation of each payment between interest and principal, assuming in each case that there is
no suspension or forfeiture of such amounts in accordance with the terms of this Note (as it may be amended in connection with
an adjustment to the Aggregate Principal Amount in accordance with Section 1.5(d) of the Purchase Agreement, the “Payment
and Amortization Schedule”), and (b) for the next four (4) fiscal quarters thereafter and the additional partial
quarter thereafter, on a straight-line basis amortizing the remaining payments of principal and interest on this Note (less any
amounts forfeited pursuant to Section 3) over such period covering such four (4) fiscal quarters and additional partial
quarter (with the amount for the partial quarter allocated on a fractional basis), each to be in the amount set forth in the Payment
and Amortization Schedule (the “Final Quarterly Installments” and, together with the Initial Quarterly
Installments, the “Quarterly Installments”), with any remaining principal amount of, and all unpaid accrued
interest on, this Note (less any amounts forfeited or suspended pursuant to Section 3) due and payable on the three (3)
year anniversary of the Issuance Date (the “Maturity Date”); provided, however, that in
the event that a Suspension of Payment occurs pursuant to Section 3 below for (i) the second to last full fiscal quarter
prior to the Maturity Date, the Maturity Date shall be extended after the three (3) year anniversary of the Issuance Date to be
the date which is the fifteenth (15th) day after the last day of the fiscal quarter in which the Maturity Date otherwise
would have occurred, or (ii) the last full fiscal quarter prior to the Maturity Date, the Maturity Date shall be extended after
the three (3) year anniversary of the Issuance Date to be the date which is the fifteenth (15th) day after the last
day of the first full fiscal quarter ending after the fiscal quarter in which the Maturity Date otherwise would have occurred.
In the event of any extension of the Maturity Date pursuant to the preceding proviso, the amount that would have otherwise been
due on the original Maturity Date for the partial fiscal quarter ending on the Maturity Date shall be added to the amount otherwise
payable for the last full fiscal quarter ended prior to the original Maturity Date and paid or forfeited, as applicable, at the
same time that the amount for the last full fiscal quarter ended prior to the original Maturity Date is, as applicable, paid or
forfeited. All payments or deemed payments under this Note, including any offsets under Section 8 hereof, shall be applied
first to any fees and expenses due to Payees under this Note, then any accrued and unpaid interest on principal amounts previously
paid and then to accrued interest on unpaid principal, then to the unpaid principal under this Note, and finally to any other obligations
under this Note (provided, that the Quarterly Installments shall be allocated between principal and interest as described above
in this Section 1 and as set forth in the Payment and Amortization Schedule and incorporated herein by reference, with any
partial payment first applied to accrued interest). Except to the extent otherwise provided in Section 3(f), all payments
or offsets, and all obligations of Maker, under this Note shall be allocated fifty-one percent (51%) to Alison Fogel and forty-nine
percent (49%) to David Fogel.

 

    	2

    	 

    

  

2.          Interest
Rate and Payments; No Security Interest. Subject to this Section 2 and Section 7(c), interest on the outstanding
principal amount shall accrue daily at a rate equal to six percent (6%) per annum (the “Interest Rate”).
Interest will be calculated on the basis of a 365-day year for the actual number of days elapsed. Except to the extent forfeited
pursuant to Section 3 for any fiscal quarter in which a Suspension of Payment occurs (each fiscal quarter in which a Suspension
of Payment occurs, a “Suspension Quarter”), interest will accrue from the date hereof until the outstanding
principal amount is paid or otherwise satisfied in full. The Quarterly Installments shall be payable on a fiscal quarterly basis,
no later than the fifteenth (15th) day after the end of such fiscal quarter, beginning with the fiscal quarter in which
the Issuance Date occurs. On the Maturity Date (as it may be extended pursuant to Section 1), Maker will pay all remaining
principal and accrued but unpaid interest that has not been forfeited pursuant to Section 3 below. Whenever any payment
or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding
Business Day. This Note is subject to the express condition that at no time shall Maker be obligated or required to pay interest
on the principal balance at a rate which could subject Maker or either Payee to either civil or criminal liability as a result
of being in excess of the maximum rate which Maker is permitted by applicable law to contract or agree to pay. If by the terms
of this Note, Maker is at any time required or obligated to pay interest on the principal balance at a rate in excess of such maximum
rate, the Interest Rate under this Note shall be deemed to be immediately reduced to such maximum rate and interest payable hereunder
shall be computed at such maximum rate. This Note is an unsecured promissory note.

 

3.          Suspension
of Payments; Calculation of Gross Profit.

 

(a)          Notwithstanding
any other provisions of this Note (but subject to Section 3(f) below), the obligation of Maker to pay any Quarterly Installment
due hereunder shall immediately be suspended (a “Suspension of Payment”)
if the Gross Profit for the trailing four (4) full fiscal quarter period ending as of the fiscal quarter for which such Quarterly
Installment is due (the “TFQ Gross Profit”) is less than eighty-five percent (85%) of the Closing Gross
Profit (the “Target Gross Profit”). With respect to each Suspension Quarter, (i) if the TFQ Gross Profit
as of the end of either of the two (2) fiscal quarters immediately following such Suspension Quarter exceeds the Target Gross Profit,
Maker shall pay the Quarterly Installment for such Suspension Quarter at the same time that it pays the Quarterly Installment for
such subsequent fiscal quarter as of the end of which the TFQ Gross Profit exceeds the Target Gross Profit (or with respect to
the last two fiscal quarters prior to the initial Maturity Date, by the fifteenth (15th) day after the end of such subsequent
fiscal quarter), and (ii) if the TFQ Gross Profit for each of the two (2) fiscal quarters immediately following such Suspension
Quarter does not exceed the Target Gross Profit, Payees shall forfeit any rights to, and Maker shall have no obligation under this
Note with respect to, the Quarterly Installment for such Suspension Quarter (and any interest or other amounts payable on the principal
or interest included in such forfeited Quarterly Installment). For the avoidance of doubt, on the Maturity Date (subject to extension
in accordance with Section 1 of this Note) the outstanding principal balance of this Note together with all accrued interest
(net of any Quarterly Installments which were forfeited pursuant to the terms of this Section 3) shall be due and payable
and shall be paid in full by the Maker to the Payees on the Maturity Date (as extended in accordance with Section 1 of this
Note).

 

(b)          For
purposes hereof: (i) “Gross Profit” shall mean, with respect to any applicable period, the consolidated
Revenues of the Lighthouse Companies less the consolidated direct Costs of Services of the Lighthouse Companies, calculated in
accordance with GAAP as consistently applied by Maker and its Subsidiaries; (ii) “Revenue” shall mean,
as determined in accordance with GAAP as consistently applied by Maker and its Subsidiaries: (A) revenue for temporary services
(recognized at the time that the service is provided and revenue is recorded on a time and materials basis); (B) temporary contracting
revenue (recognized as gross when a Lighthouse Company acts as principal in the transaction and is at risk for collection); (C)
revenue that does not meet the criteria for gross revenue reporting (reported on a net basis); (D) revenue generated when a Lighthouse
Company permanently places an individual with a client on a contingent basis (recorded at the time of acceptance of employment);
and (E) revenue generated when a Lighthouse Company places an individual with a client on a retained basis (recorded ratably over
the period the services are rendered); (iii) “Cost of Services” means the direct costs to generate the
Revenues, including payroll expenses to independent contractors, payroll burdens, payroll taxes and insurance obligations and reimbursable
expenses, as determined in accordance with GAAP as consistently applied by Maker and its Subsidiaries; and (iv) “Closing
Gross Profit” means the Gross Profit for the trailing four (4) full fiscal quarter period as of the fiscal quarter
ending June 30, 2015.

 

    	3

    	 

    

  

(c)          For
illustration purposes, the calculation of Gross Profit for the fiscal year ended December 31, 2014 is as set forth on Exhibit
A hereto. Any ambiguities in the calculation of the Gross Profit shall be determined in a manner consistent with Exhibit
A, or if there is a change in GAAP after the Issuance Date such that the manner contemplated by Exhibit A is no longer
in compliance with GAAP, then in such manner that is as close as possible to that contemplated under Exhibit A that is in
compliance with the new GAAP principles. In the event any such change in GAAP causes the manner of calculating Gross Profit going
forward to differ significantly from the manner in which the Closing Gross Profit was previously calculated, Maker and the Seller
Representative on behalf of the Payees shall adjust the Closing Gross Profit by re-calculating the Gross Profit for the trailing
four (4) full fiscal quarter period ending December 31, 2014 as if such new GAAP requirements were in effect at the time.

 

(d)          If
after the Issuance Date any Lighthouse Company acquires another business (including any portion or part of another business) or
enters into a line of business other than the normal business activities of the Company conducted as of the Issuance Date with
the prior written consent of Payees (such consent not to be unreasonably withheld, delayed or conditioned), then the TFQ Gross
Profit shall be computed taking into consideration the financial results of such acquired or new line of business. If after the
Issuance Date any Lighthouse Company acquires another business (including any portion or part of another business) or enters into
a line of business other than the normal business activities of the Company conducted as of the Issuance Date without the prior
written consent of Payees (such consent not to be unreasonably withheld, delayed or conditioned), then the TFQ Gross Profit for
the applicable fiscal quarter in which such acquisition occurs or such new line of business commences and for all subsequent fiscal
quarters shall be deemed to be greater than the Target Gross Profit for purposes of this Note, and any payments of principal and
interest under this Note after such acquisition occurs or such new line of business commences shall be made when otherwise due
in accordance with this Note. Maker hereby agrees that while any obligations are outstanding under this Note, subject to Section
3(e) below, Maker shall, and shall cause the Company to, use their commercially reasonable efforts to maintain a financial
reporting system that enables the parties to calculate the Gross Profit for purposes of this Note.

 

(e)          If
Maker consummates a Lighthouse Change of Control Transaction while any obligations are outstanding under this Note, Maker will
provide in the sale documents for such transaction that the acquirer shall assume and agree to perform Maker’s obligations
under this Note if the foregoing would not happen as a matter of law. In the event a Lighthouse Change of Control Transaction occurs
(including if deemed to have occurred), then the TFQ Gross Profit for the applicable fiscal quarter in which the Lighthouse Change
of Control Transaction occurs and for all subsequent fiscal quarters shall be deemed to be greater than the Target Gross Profit
for purposes of this Note, and any payments of principal and interest under this Note after such Lighthouse Change of Control Transaction
occurs shall be made when otherwise due in accordance with this Note (except for a Lighthouse Change of Control Transaction described
in clause (ii) of the definition thereof, in which case the principal balance of this Note plus all accrued interest under this
Note shall immediately accelerate and become due and payable upon the consummation of such Lighthouse Change of Control Transaction).

 

(f)          In
the event that while any obligations are outstanding under this Note, a Payee’s employment under such Payee’s Employment
Agreement, dated as of the date hereof (each, an “Employment Agreement”), between such Payee and the
Company is terminated in accordance with the terms of such Employment Agreement either (x) by the Company without Cause (as defined
in such Payee’s Employment Agreement) (other than due to death or Disability (as defined in such Payee’s Employment
Agreement)) or (y) by such Payee for Good Reason (as defined in such Payee’s Employment Agreement) (a termination described
in clauses (x) or (y), a “Qualifying Termination”), then, notwithstanding anything to the contrary contained
in this Note:

 

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(i)          for
purposes of determining Maker’s obligations under this Note to such Payee subject to the Qualifying Termination (but not
the other Payee), the TFQ Gross Profit for any fiscal quarter ending after the Date of Termination (as defined in such Payee’s
Employment Agreement) of such terminated Payee shall be deemed for purposes of this Note to be greater than the Target Gross Profit;
and

 

(ii)         for
purposes of determining Maker’s obligations under this Note to the other Payee that has not been subject to the Qualifying
Termination, the Target Gross Profit for any period ending after the Date of Termination of the terminated Payee shall be reduced
by twenty percent (20%) (with the percentage reduction in the Target Gross Profit for any trailing four (4) fiscal quarter period
(the “TFQ”) in which the Date of Termination occurs being pro-rated so that such percentage reduction
is equal to (A) twenty percent (20%), multiplied by (B) the number of days in the TFQ from and after the Date of Termination, and
divided by (C) the total number of days in the TFQ).

 

4.          Procedures
for Determining Gross Profit. 

 

(a)          Together
with each Quarterly Installment (or if no Quarterly Installment is to be paid for such fiscal quarter as a result of a Suspension
of Payment as determined by Maker or with respect to a fiscal quarter after the end of the initial Maturity Date in which a Suspension
of Payment continues, within fifteen (15) days after the end of such fiscal quarter), Maker will prepare and deliver to the Seller
Representative on behalf of Payees a written statement (each, a “Gross Profit Statement”) that sets forth
Maker’s determination in accordance with the terms of this Note of the Gross Profit for the fiscal quarter most recently
ended (the “Subject Quarter”) and the TFQ Gross Profit for the TFQ ending as of the Subject Quarter (the
“Subject TFQ”), whether or not a Suspension of Payment has occurred for the Subject Quarter and, if there
was a Suspension Quarter in the either of the two (2) fiscal quarters prior to the Subject Quarter where the Suspension of Payment
is continuing, whether the Subject TFQ exceeds the Target Gross Profit such that the Suspension of Payment shall no longer continue
with respect to such prior Suspension Quarter. Payees and their Representatives will provide Maker and its Representatives with
reasonable access to the books and records, personnel and properties of the Lighthouse Companies, and any other information of
the Lighthouse Companies, that Maker reasonably requests in connection with Maker’s preparation of each Gross Profit Statement.

 

(b)          In
the event that Maker notifies the Seller Representative on behalf of Payees that there is a Suspension of Payment for the Subject
Quarter or that a Suspension of Payment for one or more Suspension Quarters occurring in the prior two (2) fiscal quarters is still
continuing after calculating the Subject TFQ, the Seller Representative on behalf of Payees will have the right to have an independent
certified public accountant (the “CPA”) review and inspect the records of the Lighthouse Companies (and
any other records of Maker and its Subsidiaries to the extent relating to the Gross Profit determination) for the Subject Quarter
and the Subject TFQ for the purpose of determining the accuracy of the Gross Profit Statement and the Gross Profit calculated therein
by delivering written notice thereof within fifteen (15) days after the delivery of the Gross Profit Statement for the Subject
Quarter. The CPA selected to conduct such review must be acceptable to both Maker and the Seller Representative (provided, that
if the CPA does not accept its appointment or Maker and the Seller Representative cannot agree on the CPA, in either case within
ten (10) days after Maker’s receipt of the notice from the Seller Representative requesting the CPA, either Maker or the
Seller Representative may require, by written notice to the other, that the CPA be selected by the New York City Regional Office
of the American Arbitration Association in accordance with the procedures of the American Arbitration Association). Each of Maker
and the Seller Representative on behalf of the Payees will execute a reasonable and customary engagement letter with the CPA with
respect to its review that is consistent with the terms of this Section 4 (including the responsibility of the parties for
the CPA’s costs and expenses). In connection with the CPA’s review, Maker will permit the CPA, upon reasonable prior
written notice, to have access during normal business hours to such records and finance personnel of the Lighthouse Companies (and
any other records of Maker and its Subsidiaries to the extent relating to the Gross Profit determination), as may be reasonably
necessary to verify Maker’s calculation of the Gross Profit hereunder for the Subject Quarter and the Subject TFQ, including
their books, records and working papers. The CPA will promptly and diligently conduct its review and will provide in writing to
the Seller Representative and Maker within thirty (30) days after its engagement its final determination with respect to the Gross
Profit for the Subject Quarter and the Subject TFQ. Each Payee and Maker will use its commercially reasonable efforts to permit
the CPA to timely complete its review.

 

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(c)          In
the event that the CPA reasonably determines that the TFQ Gross Profit for the Subject TFQ was equal to or greater than the Target
Gross Profit, (i) the parties will be bound by such determination, (ii) Maker shall be responsible for the reasonable fees and
expenses charged by the CPA with respect to its review of the Subject Quarter and the Subject TFQ, (iii) if the Seller Representative
requested the review by the CPA because Maker notified the Seller Representative that there was a Suspension of Payment for the
Subject Quarter, Maker will pay to Payees the Quarterly Installment for the Subject Quarter within fifteen (15) days after Maker’s
receipt of the CPA’s written report and (iv) if the Seller Representative requested the review by the CPA because there was
a Suspension of Payment for one or more Suspension Quarters occurring in the prior two (2) fiscal quarters and Maker notified the
Seller Representative that such Suspension of Payment is still continuing after calculating the Subject TFQ, Maker will pay to
Payees the Quarterly Installment for any such Suspension Quarter(s). In the event that the CPA reasonably determines that the TFQ
Gross Profit for the Subject TFQ was less than the Target Gross Profit, (i) the parties will be bound by such determination, (ii)
Payees shall be responsible for the reasonable fees and expenses charge by the CPA with respect to its review of the Subject Quarter
and the Subject TFQ, and (iii) the provisions of Section 3 will apply to such Subject Quarter. For the avoidance of doubt,
in the event of a Qualifying Termination of a Payee under Section 3(f), the provisions of this Section 4 (as modified
by Section 3(f)(ii)) will apply only to the Payee that has not been subject to the Qualifying Termination and payments will
be adjusted for such Payee’s share of this Note. Any calculations of TFQ Gross Profit for any subsequent fiscal quarter that
includes the Gross Profit for the Subject Quarter or any portion of the Subject TFQ will apply the determinations of the CPA with
respect to the Gross Profit for the Subject Quarter and the portion of the Subject TFQ that is included in the TFQ Gross Profit
for such subsequent fiscal quarter.

 

5.          Notice
to Payees; Prepayment.

 

(a)          Maker
shall provide Payees with written notice (i) promptly (but in any event within thirty (30) days) after Maker becomes aware that
any order or decree described in Section 7(a)(iii) is entered, (ii) immediately upon the
occurrence of any Event of Default listed in clause (iii), (iv), (v), or (vi) of Section 7(a), or (iii) promptly
(but in any event within thirty (30) days) after the consummation of any Lighthouse Change of Control Transaction.

 

(b)          Maker
may, in its discretion, prepay this Note in whole or in part prior to the Maturity Date.

 

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6.          Conversion.

 

(a)          Subject
to Section 6(d) below, Payees shall have the right (the “Conversion Right”), exercisable at any
time prior to the Maturity Date by providing written notice thereof (a “Conversion Notice”) to Maker,
to convert all of the outstanding principal and accrued but unpaid interest under this Note (for the avoidance of doubt, (i) taking
into account any amounts forfeited prior to such time pursuant to Section 3 and (ii) less the amount of the Quarterly Installments
for any Suspension Quarters where a Suspension of Payments is still occurring at such time (and
any interest or other amounts payable on the principal or interest included in such Quarterly Installments)) (such net amount,
the “Outstanding Obligations”) into shares of Buyer Common Stock at a conversion price (the “Conversion
Price”) equal to the greater of (i) eighty percent (80%) of the VWAP Price as of the date of Payee’s delivery
of the Conversion Notice and (ii) the Buyer Common Stock Price. Upon the issuance of the shares of Buyer Common Stock after conversion
of the obligations under this Note in accordance with this Section 6 (the “Conversion Shares”),
all obligations of Maker under this Note, including any outstanding principal amounts and any accrued but unpaid interest, shall
be deemed to be paid and satisfied in full.

 

(b)          Maker
shall reasonably and in good faith make any equitable adjustments to the Conversion Price hereunder to account for any stock dividends,
stock splits, reverse stock splits, special dividends and distributions, recapitalizations and other similar transactions occurring
after the Issuance Date with respect to the Buyer Common Stock. In the event of any transaction occurring after the Issuance Date
in which all outstanding Buyer Common Stock is exchanged for another form of equity of Maker or equity of another entity, the Conversion
Right hereunder shall instead permit the outstanding obligations under this Note to be converted into such other form of equity
of Maker or equity of such other entity, as applicable, with Maker making any equitable adjustments to the Conversion Price as
it reasonably determines in good faith.

 

(c)          The
parties hereby acknowledge and agree that the shares of Buyer Common Stock issuable upon conversion of the obligations under this
Note in accordance with this Section 6 (the “Conversion Shares”) shall be subject to the terms
and conditions of Sections 6.7, 6.8 and 7.7 of the Purchase Agreement as if they were “Shares” thereunder. In the event
that the obligations under this Note are converted into Conversion Shares prior to the payment of any Adjustment Amount under Section
1.5(e) of the Purchase Agreement, any portion of the Adjustment Amount which would other be payable under Section 1.5(e) of the
Purchase Agreement pursuant to an increase or a decrease in the principal amount of the Note shall instead be paid by delivery
of Conversion Shares, with each Conversion Share valued at the Conversion Price for such purposes.

 

(d)          Notwithstanding
anything to the contrary contained in this Note, at any time when a Suspension of Payment for any Suspension Quarter is in effect
and still continuing (including if as a result of Section 3(f), such Suspension of Payment only applies to one Payee and
not the other), the Conversion Right shall not be available to Payees, and Maker shall have no obligation to deliver the Conversion
Shares hereunder.

 

7.          Events
of Default and Remedies.

 

(a)          Each
of the following shall constitute an “Event of Default”.

 

(i)          the
failure of Maker to pay or otherwise satisfy any amounts due under this Note when due (subject to the Suspension of Payment provided
for in Section 3 and the procedure for resolving any disputes), which failure is not cured within three (3) Business Days
after written notice of such failure is received by Maker from Payees;

 

(ii)         the
default by Maker of any of its covenants or agreements under this Note (other than those described in clause (i) above) in any
material respect, which default is not cured within thirty (30) days after written notice of such default is received by Maker
from Payees;

 

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(iii)        a
decree, judgment, or order by a court of competent jurisdiction shall have been entered adjudging Maker as bankrupt or insolvent,
or approving as properly filed a petition seeking reorganization of Maker under any bankruptcy or similar law, and such decree
or order shall have continued undischarged and unstayed for a period of ninety (90) days; or a decree or order of a court of competent
jurisdiction ordering the appointment of a receiver, liquidator, trustee, or assignee in bankruptcy or insolvency of Maker, or
for the winding up or liquidation of the affairs of Maker, shall have been entered, and such decree, judgment, or order shall have
remained in force undischarged and unstayed for a period of sixty (60) days;

 

(iv)        Maker
shall institute proceedings to be adjudicated a voluntary bankrupt, or shall consent to the filing of a bankruptcy proceeding against
it, or shall file a petition or answer or consent seeking reorganization under any bankruptcy or similar law or similar statute,
or shall consent to the filing of any such petition, or shall consent to the appointment of a custodian, receiver, liquidator,
trustee, or assignee in bankruptcy or insolvency of it or any of its assets or property, or shall make a general assignment for
the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due;

 

(v)         the
voluntary or involuntary dissolution, termination of existence or liquidation of Maker or the voluntary dissolution, termination
of existence or liquidation of the Company (in each case, other than in connection with an internal corporate reorganization or
a change of control of Maker, in either case, in which the successor to Maker assumes all of Maker’s obligations under this
Note); or

 

(vi)        both
(A) the occurrence of an “Event of Default” under, and as defined in, either (I) that certain Credit and Security Agreement
dated as of April 8, 2015 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Monroe
Credit Agreement”), by and among MidCap Funding X Trust, as Agent thereunder (“Agent”),
the lenders named therein, PeopleSERVE, Inc., Monroe Staffing Services, LLC, Maker and any additional borrowers thereunder or (II)
that certain Credit and Security Agreement, dated as of April 8, 2015 (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the “PRS Credit Agreement” and, together with the Monroe Credit Agreement,
the “Credit Agreements”), by and among Agent, the lenders named therein and PeopleSERVE PRS, Inc., and
(B) where Agent has delivered notice to Payees pursuant to the terms of the Subordination Agreement, dated as of the Issuance Date
(as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Subordination Agreement”),
by and among Payees (as subordinated lenders), Maker, Agent and the lenders named therein, that Permitted Subordinated Loan Payments
(as defined in the Subordination Agreement) are not permitted pursuant to the terms of the Subordination Agreement as a result
of such Event of Default under a Credit Agreement (a “Suspension Notice”); provided, that if such
Event of Default under a Credit Agreement is cured or such Suspension Notice is rescinded, in either case, within ninety (90) days
after the receipt of the Suspension Notice by Payees, any Event of Default under this clause (vi) as a result of such Event of
Default under a Credit Agreement or such Suspension Notice shall be automatically deemed to have been cured, and Payees shall have
no rights with respect thereto (other than to collect any payments under this Note which were not otherwise permitted to be paid
by Maker as a result thereof).

 

(b)          If
an Event of Default occurs and is continuing, then Payees, by providing written notice to Maker (an “Acceleration Notice”),
may declare to be due and payable immediately all of the Outstanding Obligations, together with all Quarterly Installments which
are then suspended pursuant to Section 3(a); provided, that upon the occurrence of
any Event of Default listed in clause (iii), (iv) or (v) of Section 7(a), the Outstanding
Obligations shall immediately accelerate and become due and payable without the requirement of an Acceleration Notice or any other
action on the part of Payees.

 

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(c)          Without
in any way derogating Payees’ rights upon the occurrence of an Event of Default, if there is an Event of Default under clause
(i) of Section 7(a) and either (x) any Quarterly Installment due under this Note or (y) the principal and interest due on
the Maturity Date, in either case, is not paid or otherwise satisfied within ten (10) days after such Event of Default, then in
addition to its other obligations under this Note, Maker shall pay to Payees a late fee equal to five percent (5%) of the amount
of such late payment (for the avoidance of doubt, such late fee will not apply to any accelerated obligations under this Note).
If there is an Event of Default which extends beyond any and all applicable notice and cure periods (and whether or not Payees
exercise their rights on account thereof), then from the occurrence of such Event of Default and during the continuance of such
Event of Default, the Interest Rate for purposes of this Note shall be equal to twelve percent (12%) per annum.

 

8.          Right
to Set-Off. The obligations of Maker under this Note may be offset as set forth in and in accordance with Article VII of
the Purchase Agreement, any such offset obligations shall be deemed paid for purposes of this Note.

 

9.          Attorneys’
Fees. Except with respect to the costs of the review by the CPA as set forth in Section 4, the non-prevailing party
to any claim that is finally determined under this Note will pay its own expenses and the reasonable documented out-of-pocket expenses,
including reasonable attorneys’ fees and costs, reasonably incurred by the other party, including any claims by Payees to
collect and/or to enforce any of the obligations of Maker hereunder and/or to enforce any of Payees’ rights, remedies or
powers against or in respect of Maker. The parties will request in connection with any such claim that the applicable court determine
and declare the prevailing party in such claim.

 

10.         No
Transfer of Rights to Receive Payments. Without limiting anything contained in this Note, without the prior written consent
of Maker (which may be withheld in its sole discretion), neither Payee may transfer, assign, convey or subject to any Lien any
of Payee’s rights under this Note to receive any payments; provided, that this Section 10 and the first restrictive
legend at the top of the first page of this Note shall not prevent transfers of such rights by a Payee to (i) such Payee’s
estate or heirs (by will or intestate succession) upon such Payee’s death or (ii) one or more trusts for the benefit of the
immediate family members of such Payee, provided that, in each case, the transferee acknowledges and agrees to the terms, conditions
and obligations set forth in this Note.

 

11.         Incorporation
of Purchase Agreement Provisions. The parties hereby agree that Sections 8.2 through 8.7 and Sections 8.9 through 8.14
of the Purchase Agreement are hereby incorporated herein as if set forth in this Agreement, with any reference to the Purchase
Agreement therein referring to this Note instead. Without limiting the foregoing, Payees hereby acknowledge and agree that the
Seller Representative shall be fully authorized, and shall represent each Payee with respect to the enforcement of, determinations
made under, notices provided under, and any disputes in connection with, this Note.

 

12.         Subordination
Agreement. Maker and Payees hereby acknowledge that this Note is subject to the terms and conditions of the Subordination
Agreement, which is hereby incorporated herein by reference.

 

13.         Miscellaneous.
This Note (and to the extent incorporated herein, the Purchase Agreement, the Employment Agreements and the Subordination Agreement)
constitutes the entire agreement between the parties with respect to the subject matter hereof and referenced herein, and supersedes
and terminates any prior agreements or understanding between the parties or their respective Affiliates (written or oral) with
respect to the subject matter hereof. Unless otherwise specified, any reference in this Note to a quarter shall mean a fiscal quarter.

 

[Remainder
of page intentionally left blank; signature page follows]

 

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IN WITNESS WHEREOF, Maker
has caused this Unsecured Convertible Promissory Note to be duly executed and delivered as of the date first set forth above.

 

	 	STAFFING 360 SOLUTIONS, INC.
	 	 	 
	 	By: 	/s/ Matthew Briand
	 	Name:  Matthew Briand
	 	Title:    Chief Executive Officer

 

Acknowledged and agreed
as of the date first set forth above:

 

Payees:

 

	/s/ Alison Fogel	 
	Alison Fogel	 
	 	 
	/s/ David Fogel	 
	David Fogel	 

 

[Signature
Page to Three Year Note]

 

    	 

    	 

    

 

Exhibit A

Sample Gross Profit Calculation

 

See attachment.

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