Document:

AMENDMENT NO. 1

TO THE

SHARE PURCHAS AGREEMENT

 

THIS AMENDMENT (this
“Amendment”) to the Share Purchase Agreement dated as of October 30, 2013 (the “Share Purchase Agreement”),
by and among Staffing 360 Solutions, Inc., a Nevada corporation (the “Company” or “Purchaser”),
and the Shareholders (the “Shareholders”) of Initio International Holdings Limited (“Initio”),
is entered into by the parties hereto as of this 10th day of December, 2013.

 

RECITALS:

 

WHEREAS, the Company
and the Shareholders entered into that certain Share Purchase Agreement, which such Share Purchase Agreement was to be non-binding
until the completion of certain actions including, but not limited to, deep due diligence and securing the necessary financing
to complete the transaction;

 

WHEREAS, each of the
Company and the Shareholders have conducted analysis and provided relevant calculations regarding the Adjusted EBITDA, as defined
in the Share Purchase Agreement;

 

WHEREAS, the Company
has determined that the Adjusted EBITDA for the 12 months ended September 30, 2013 was approximately $3.0 million and the Shareholders
have determined that the Adjusted EBITDA for the 12 months ended September 20, 2013 was approximately $3.3 million;

 

WHEREAS, the Share
Purchase Agreement contemplated a post-closing adjustment to the Purchase Price based upon the Adjusted EBITDA for the 12 month
ending December 31, 2013;

 

WHEREAS, after negotiations,
the parties have agreed to proceed with the transaction contemplated by that Share Purchase Agreement based upon a fixed Purchase
Price of $14.85 million with no post-closing adjustment based upon the December 31, 2013 Adjusted EBITDA results and no post-closing
working capital adjustment;

 

WHEREAS, the provisions
set forth in this Amendment are hereby deemed to supersede and replace certain provisions of that Share Purchase Agreement and
upon execution of this Amendment.

 

NOW, THEREFORE, in
consideration of the premises, the mutual promises contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.            All
capitalized terms used and not defined herein shall have the meanings ascribed thereto in the Initial Stock Purchase Agreement.

 

2.            The
first Recital of the Share Purchase Price is hereby amended such that the term "Purchase Price" shall be deleted
and replaced with the term "Total Purchase Price".

 

3.            Section
1.1 of the Share Purchase Agreement is hereby amended by the deletion of the following capitalized terms and their meanings in
their entirety:

 

	“Accounting Policies”	means the accounting policies and practices used in the preparation of the Accounts that are in accordance with accounting standards policies principles and practices generally accepted in the United Kingdom (including all applicable statements of Standard Accounting Practice and Financial Reporting Standards) including the policies and practices listed in Section 2 of Schedule 2.

 

    	 

    	 

    

 

	“Adjusted EBITDA”	means earnings before interest, taxes, depreciation, amortization, and also excludes business reorganization costs, impairment of goodwill, and costs incurred outside of the normal course of business or non-recurring costs in accordance with the Accounting Policies.
	 	 
	“EBITDA”	means earnings before interest, taxes, depreciation and amortization, calculated in accordance with Sections 2, 3 and 4 of Schedule 2.
	 	 
	“Purchase Price”	has the meaning set forth in Section 2.2 hereof.
	 	 
	"September Accounts"	means the consolidated management accounts of the Group for the twelve month period ending on September 30, 2013 showing the EBITDA of the Group for the twelve month period to September 30, 2013, such accounts having been prepared in accordance with the Accounting and the Principle applied in calculating Gross Profit and Revenue of the Group, and agreed by the Purchaser and Shareholder prior to Closing.

 

4.            Section
2.2(i) of the Share Purchase Agreement is hereby deleted in its entirety and replaced with the following:

 

“(i) the aggregate amount payable by the Purchase
to the Shareholders shall be $14.85 million (the “Closing Payment”), plus:”

 

5.            Section
2.3(i) of the Share Purchase Agreement is hereby deleted in its entirety and replaced with the following:

 

“(i) the Closing Payment shall be paid by the
Purchaser on the Closing Date and shall be payable by the Purchaser as set forth in Sections 2.3(a), (b) and (c) below and each
Shareholder shall receive such proportion of the Closing Payment as set forth in Schedule 1; and”.

 

6.            Section
2.3(d) of the Share Purchase Agreement is hereby deleted in its entirety.

 

7.            Within
1 week from the execution of this Amendment, the Shareholders and Initio shall deliver to the Company completed and final copies
of the Deed of Warranties and the Disclosure Letter with disclosure satisfactory to the Purchaser.

 

8.            Section
2.3(e) of the Share Purchase Agreement is hereby deleted in its entirety and replaced with the following:

 

    	 

    	 

    

 

“(e)  Minimum
Working Capital. The Parties hereby agree that at Closing, the Group shall maintain a minimum working capital (being the current
assets of the Group less the current liabilities of the Group) of at least $299,000 (the “Working Capital Requirement”).
On Closing the Shareholders shall procure that management accounts of the Group for the period from 1 October, 2013 to the Closing
Date are produced and delivered to the Purchaser detailing the working capital of the Group at Closing as calculated in accordance
with the principles applied in calculating Gross Profit and Revenue and the pro-forma set out in Schedule 3 (the "Working
Capital Amount"). The Purchaser shall have 20 Business Days following submission to it of such management accounts and
Working Capital Amount ("Response Period") to notify the Shareholders in writing ("Purchaser Response")
that does not agree with the Working Capital Amount and setting out in reasonable detail the points of disagreement and the adjustments
which the Purchaser believes are required. Any items not identified in the Purchaser Response will be deemed to be agreed and,
if no Purchaser Response is received during the Response Period, the Purchaser will be deemed to have accepted the Working Capital
Amount and such amount will (in the absence of fraud or manifest error) be binding on the parties. If a Purchaser Response is received
by the Shareholders during the Response Period then the Purchaser and Shareholders will have until the date falling 20 Business
Days after the date on which the Purchaser Response is received by the Shareholders (the "Resolution Period")
to agree the items in dispute and therefore the Working Capital Amount. The amount so agreed will (in the absence of fraud or manifest
error) be final and binding on the Parties. If agreement cannot be reached during the Resolution Period then the matter shall be
referred to the Expert for final decision in accordance with paragraph 4 of Schedule 2, who will decide the Working Capital Amount.
Once the Working Capital Amount has been agreed or determined then, within 5 Business Days of such agreement or determination:
(i) in the event that the Working Capital Amount is less than the Minimum Working Capital Requirement, the Shareholders shall pay
the difference between the Working Capital Requirement and the Working Capital Amount to the Purchaser by the cancellation of such
number of Purchase Shares (valued at $1.50 per share) as shall equal 33.3% of the amount of the Reduction Amount, 40% of the Reduction
Amount in cash and 26.7% of the Reduction Amount shall be applied in reducing the principal amount of the Promissory Note (together
with accrued interest thereon) (the "Working Capital Reduction Payment"), or (ii) in the event that the Working
Capital Amount is more than the Working Capital Requirement the Total Purchase Price shall be increased to reflect any excess amount
over the Working Capital Requirement (the "Working Capital Additional Payment") and the Purchaser shall pay such
amount to the Shareholders (in such proportions as set out in Schedule 1) as to 33.3% in Purchaser Common Stock (valued at $1.50
per share), 40% in cash and 26.7% in Promissory Notes.”

 

9.            Schedules
1, 4 and 5 are hereby deleted in their entirety and shall be replaced with such Schedules as shall be provided by the Covenantors'
and Sellers' Representatives at least one Business Day prior to the Closing Date.

 

10.          The
Parties hereby agree that the Closing Date of the transaction shall be on or about January 3, 2014.

 

11.          Except
as modified hereby, all other provisions in the Share Purchase Agreement shall remain in full force and effect.

 

12.          This
Amendment (a) may be executed in two or more counterparts, each of which shall be deemed to be an original, but all such counterparts
together shall constitute a single agreement; (b) may be executed by facsimile signature, provided that the original thereof is
provided to the other Parties promptly thereafter; (c) shall be construed without regard to headings or captions, or gender, or
whether a reference is to the singular or plural; and (d) shall be governed by, and construed in accordance with the laws of New
York

 

    	 

    	 

    

 

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment as of the date first above-written.     

    

	 	PURCHASER:
	 	 
	 	Staffing 360 Solutions, Inc.
	 	 
	 	By:	 
	 	 	Name: Alfonso J. Cervantes
	 	 	Title: President
	 	 
	 	SHAREHOLDERS:
	 	 
	 	 
	 	Brendan Flood
	 	 
	 	 
	 	Matthew Briand
	 	 
	 	 
	 	Simon Lythgoe, acting by his attorney Brendan Flood
	 	 
	 	 
	 	Kate Hughes, acting by her attorney Brendan Flood
	 	 
	 	 
	 	Sukong Pang, acting by his attorney Brendan Flood
	 	 
	 	 
	 	Masahiro Nishimura, acting by his attorney Brendan FloodTHIS
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 FOR
THE HOLDER SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION.

 

6% UNSECURED
PROMISSORY NOTE

 

Issuance
Date: 

Principal
Amount: $

 

For
value received, Staffing 360 Solutions, Inc., a Nevada corporation (the “Company”), promises to pay to
the order of ________________ (“Holder”) the principal sum of $___________, together with
interest accrued but unpaid thereon, at the rate and on the terms set forth below in this promissory note (the “Note”).
The date of this Note is January 3, 2014 (the “Issuance Date”). This Note is being issued in connection
with that certain Stock Purchase Agreement, dated October 30, 2013 as amended December 10, 2013 (the “SPA”),
by and between the Company, Initio International Holdings, Inc. and the Shareholders of Initio. All terms not defined herein are
defined in the SPA.

 

1          Repayment.
All payments of interest and principal shall be in lawful money of the United States of
America in immediately available funds, at the address of the Holder on the books of the Company or at such other place, or by
wire transfer of funds to such account of the Holder, as the Holder may designate in writing to the Company. All payments shall
be applied first to accrued interest, and thereafter to principal and no Suspension of Payments occurs. Unless the Note is paid
as set forth herein, unless as Suspension of Payment occurs, and is continuing payments of principal shall be made in monthly installments
in the monthly amount of 1/60th of the principal due on the Issuance Date along with the accrued interests payments,
the entire outstanding principal amount of, and all unpaid accrued interest on, the Note shall be due and payable on the 36 month
anniversary of the Issuance Date (the “Maturity Date”), provided, however, in the event a Suspension
of Payment occurs pursuant to Section 3, below, the Maturity Date shall be extended after the 36 month anniversary equal to the
time that a Suspension of Payment shall continue.

 

2          Interest
Rate and Payments; No Security Interest. Interest on the outstanding principal amount
shall accrue daily at a rate equal to six percent (6%) per annum. Interest will be calculated on the basis of a 365-day year for
the actual number of days elapsed. Interest will accrue from the date hereof until the outstanding principal amount is converted,
prepaid or paid in full. Interest and principal shall be payable on a monthly basis, within the fifteenth (15th) day of such month
(a “Payment Date”), and such payments of principal and interest shall begin on the first such Payment
Date which shall be within the calendar month following the Issuance Date. On the Maturity Date, the Company will pay a balloon
payment of the remaining principal amount due under the Note, including all accrued but unpaid interests. 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 an unsecured promissory note.

 

    	 

    	 

    

 

3          Suspension
of Payments of Principal and Interest. Notwithstanding any other provisions of this Note,
payments due hereunder and the accrual of interest shall immediately be suspended (a "Suspension of Payment")
if the Gross Profit of Initio for any twelve (12) month run rate after 31 December 2013 is less than the Gross Profit of Initio
for the trailing twelve (12) month run rate on the Issuance Date, in an amount of twenty percent (20%) or more, and shall only
be reinstated upon the date which the Gross Margin of Initio exceeds eighty percent (80%) of the Gross Profit for the financial
year ended on 31 December 2013 provided, however, that no such suspension shall occur if the shortfall in Gross Margin of
Initio referred to in the prior clause results from directly (a) legal or regulatory action (other than caused by a default of
Initio and/or the Subsidiaries) that directly impacts Initio in a materially negative manner or (b) is attributable to or is increased
directly as a result of any act, omission, transaction or arrangement carried out by or at the written request of the Parent or
the Company. For purposes of this Section 3, (i) “Gross Profit” and/or “Gross Margin”
shall mean means Revenue less direct costs of services, consisting of payroll, payroll taxes, insurance costs and reimbursable
expenses, in a manner as consistently applied by the Group, and in accordance with the Accounting Policies (ii) “Gross
Revenues” shall mean total income received from business operations of Initio, conducted as a separate subsidiary
or, if Initio is not operated as a separate subsidiary of the Company, the Gross Profit of the division or other internal organization
of the Company which includes the business formerly conducted by Initio, prior to any deductions or allowances, as determined in
accordance with United Kingdom generally accepted accounting principles consistently applied (“GAAP”)
and in accordance with the Accounting Policies and reflected in the financial statements of the Company as audited by the Company’s
independent accounting firm (“Audited Statements”) for the relevant fiscal year, (iii) “Cost
of Sales” means the direct costs to generate the Gross Revenues including, without limitation, payroll to independent
contractors, payroll burdens and insurance obligations for such contractors, as determined in accordance with GAAP and reflected
in Audited Statements for the relevant fiscal year; and (iv) "Revenue" means revenue of the Group, determined
as follows: (i) revenue for temporary services (recognized at the time that the service is provided and revenue is recorded on
a time and materials basis); (ii) temporary contracting revenue (recognized as gross when the company acts as principal in the
transaction and is at risk for collection); (iii) revenue that does not meet the criteria for gross revenue reporting (reported
on a net basis); (iv) revenue generated when the company permanently places an individual with a client on a contingent basis (recorded
at the time of acceptance of employment); and (v) revenue generated when the company places an individual with a client on a retained
basis (recorded ratably over the period the services are rendered), in a manner as consistently applied by the Group in accordance
with the Accounting Policies.

 

4          Liquidity
Event or Change of Control Prior to Maturity Date. If a Liquidity Event
occurs before the Maturity Date, then the Company shall pay to Holder, as part of the Liquidity Event, the amount
that Holder would have received had the Note been repaid at the Maturity Date, in full satisfaction of the Company’s obligations
under this Note, and Holder shall surrender the original Note to the Company. 

 

For purposes
of this Section 4:

 

“Liquidity
Event” means (a) a merger of the Company with or into another entity (if after such merger the holders of a majority
of the Company’s voting securities immediately prior to the transaction do not hold a majority of the voting securities of
the successor entity) or (b) a sale by the Company of all or substantially all of its assets to an unaffiliated third party.

 

The Company
shall give Holder at least 10 days’ written notice prior to a Liquidity Event.

 

5          Prepayment.
The Company may, in its discretion, prepay this Note in whole or in part prior to the Maturity Date.

 

6          Controlling
Law.  This Note and all questions relating to its validity, interpretation or performance and enforcement shall be governed
by and construed in accordance with the laws of the State of New York applicable to contracts wholly performed within the borders
of such state and without reference to choice-of-law principles thereof. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the State and Federal courts located in New York, New York and further agrees that in the event of any dispute
hereunder, any litigation to resolve such dispute may only be brought in such jurisdiction. Each party hereto waives any claim
to forum non-conveniens.

 

    	 

    	 

    

 

7            Waiver
of Jury Trial. EACH OF THE COMPANY AND HOLDER KNOWINGLY, IRREVOCABLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED ON THIS NOTE, OR ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS NOTE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
PARTY THERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THE LOAN TRANSACTION EVIDENCED BY THIS NOTE.

 

8            Notices.
All notices or communications given or made hereunder shall be in writing and shall be delivered or mailed by registered or certified
mail, return receipt requested, postage prepaid, or delivered by reputable overnight courier, to the party at the address set forth
below, or at such other place as the Company or Holder may designate by written notice to the other.  Notices given by mail
will be deemed to have been given on the third business day after the business day on which the notice is deposited in the mail.
 Notices given by overnight courier will be deemed given on the next business day after the business day on which the notice
is deposited with the overnight courier. Notices may also be given by e-mail if receipt is acknowledged by the recipient.

 

9            Transfer;
Successors and Assigns; Rights as Stockholder.  The terms and conditions of this Note shall inure to the benefit of and
be binding upon the respective successors and assigns of the parties. Notwithstanding the foregoing, Holder may not assign, pledge,
or otherwise transfer this Note without the prior written consent of the Company, which consent may be withheld at the Company’s
discretion. Subject to the preceding sentence, this Note may be transferred only upon surrender of the original Note for registration
of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company.
Thereupon, a new note for the same principal amount will be issued to, and registered in the name of, the transferee. Principal
and interest, or any

 

10          Events
of Default and Remedies

 

		A.	Events of Default. Each of the following shall constitute an “Event of Default”:

 

(a)          If
either of Brendan Flood or Matthew Briand cease to be employed by the Company (except where either of them voluntarily resigns
or is dismissed for gross misconduct or fraud);

 

(b)          The
failure of the Company to pay the principal amount and accrued and unpaid interest on the Maturity Date;

 

(c)          The
material default by the Company under any of its material covenants or representations under the Stock Purchase Agreement, which
default is not cured within 30 days after receipt of written notice of such default delivered to the Company by the Holder;

 

(d)          A
decree, judgment, or order by a court of competent jurisdiction shall have been entered adjudging the Company as bankrupt or insolvent,
or approving as properly filed a petition seeking reorganization of the Company under any bankruptcy or similar law, and such decree
of order shall have continued undischarged and unstayed for a period of 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 the Company, or for the
winding up or liquidation of the affairs of the Company, shall have been entered, and such decree, judgment, or order shall have
remained in force undischarged and unstayed for a period of 60 days;

 

    	 

    	 

    

 

(e)          The
Company 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.

 

		B.	Acceleration of Maturity Date. If an Event of Default occurs and is continuing, then, and
in every such case, unless the principal of this Note shall have already become due and payable, the Holder by written notice to
the Company (an “Acceleration Notice”), may declare all of the principal of the Note, together with accrued interest
thereon, to be due and payable immediately. If an Event of Default occurs, all principal of and accrued interest on this Note ipso
facto shall become and be immediately due and payable without any declaration or other act on the part of the Holder.

 

		C.	Waiver. No delay or omission by the Holders to exercise any right or remedy arising upon
any Event of Default shall impair the exercise of any such right or remedy or constitute a waiver of any such Event of Default.
Every right and remedy given by this Section or by law to the Holder may be exercised from time to time, and as often as
may be deemed expedient, by the Holder. No provision of this Note may be waived unless in writing signed by Holder, and waiver
of any one provision of this Agreement shall not be deemed to be a waiver of any other provision.

 

11          Waiver
and Amendment; Enforceability. Any provision of this Note, including, without limitation, the Maturity Date hereof, and the
observance of any term hereof, may be amended, waived or modified (either generally or in a particular instance and either retroactively
or prospectively) only with the written consent of the Company and the Holder. If one or more provisions of this Note are held
to be unenforceable under applicable law, such provisions shall be excluded from this Note, and the balance of this Note shall
be interpreted as if such provisions were so excluded and shall be enforceable in accordance with its terms.

 

12          Lost
or Stolen Note.  If this Note is lost, stolen, mutilated or otherwise destroyed, the Company shall execute and deliver
to Holder a new promissory note containing the same terms, and in the same form, as this Note. In such event, Holder shall deliver
to the Company an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any
such new promissory note.

 

13          Amendment.
This Note is being issued in a series of Notes relating to that certain SPA. This Note may be amended only by a majority of the
holders of such Notes issued in connection with that certain SPA.

 

[signature
page follows]

 

    	 

    	 

    

 

	Company:
	 
	STAFFING 360 SOLUTIONS, INC.
	 
	By: 	 
	 	Name: A.J. Cervantes
	 	Title: President

 

[Signature
page to Promissory Note of Staffing 360 Solutions, Inc.]

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